Tag Archives: ethereum

Why Ethereum Could Become the Easiest Cryptocurrency to Mine

Why Ethereum Could Become the Easiest Cryptocurrency to Mine

Why “the Easiest Cryptocurrency to Mine?” Is the Wrong Question 

Easiest Cryptocurrency to Mine The cryptocurrency revolution has arrived. With Bitcoin <span data-recalc-dims=(BTC) hitting all-time highs, peaking at one point around $3,000 per unit" width="300" height="212" srcset="https://i0.wp.com/investorsbuz.com/wp-content/uploads/2017/07/Ethereum-300×212-Small.jpg?resize=300%2C212 300w, https://i0.wp.com/investorsbuz.com/wp-content/uploads/2017/07/Ethereum-300×212-Small.jpg?w=679 679w" sizes="(max-width: 300px) 100vw, 300px" />

FOREX INVESTORS BUZZ  Easiest Cryptocurrency to Mine The cryptocurrency revolution has arrived. With Bitcoin (BTC) hitting all-time highs, peaking at one point around $3,000 per unit—and Ethereum (ETH) going from around $10.00 to over $400.00 in under a year—these two leaders in the cryptocurrency market are making the case that they are some of the most lucrative investments in 2017.

But one of the most important developments in the cryptocurrency trade right now is finding the easiest coins to mine. In fact, the easiest cryptocurrency to mine is going to be a game-changer, because whichever online currency can manage that will ultimately become the cryptocurrency of choice for the world at large.

In the case of Bitcoin mining, for instance, the process involves a third party helping a transaction go through by interacting with the blockchain. In order to do that, they need their computers to solve a complex set of math problems that increase in difficulty depending on how many miners are currently working, and decrease in difficulty if there is a dearth of miners working.

While the process is time-consuming and costly, the reward for helping that transaction go through is a Bitcoin. Not a bad trade, all things considered. Except that mining is by no means a cheap endeavor. Cryptocurrency mining takes a very strong computer, as well as a large amount of energy to power said computer.

One projection argues that Bitcoin transactions may consume as much electricity by the year 2020 as the entire nation of Denmark. (Source: “Proof of Work vs Proof of Stake: Basic Mining Guide,” BlockGeeks, last accessed July 12, 2017.)

Cryptocurrency Mining Hardware

As explained, there is a high barrier to entry when trying to mine for BTC and ETH, as well as severe energy costs. They are not the easiest coins to mine, but they are your best bets if you’re dead-set on going that route.

But a better alternative may be to look at what Ethereum is doing. The company has mentioned that it is looking into changing the way it handles mining from a proof-of-work model to a proof-of-stake model.

Essentially, instead of having miners compete, a third-party peer would be selected to help the process along. They will make a security deposit so the exchange would be done in good faith, and the process will be many magnitudes more efficient, cost-effective, and speedy.

At that point, Ethereum would become the easiest cryptocurrency to mine. With ETH becoming the easiest coin to mine, expect the value of ETH to rise accordingly.

This all makes Ethereum potentially one of the best investment opportunities in the cryptocurrency market, with huge growth on the horizon if this mining process switch is implemented correctly.

(Data source: “Ether Historical Prices (USD),” Etherscan, last accessed Juy 12, 2017.)

Best Cryptocurrency to Mine with CPU

With the Ethereum changeover expected to happen sometime in 2017, that would make ETH a good cryptocurrency to mine in 2017. Not only will the cost of production of a ETH be lowered, and therefore make the mining process more profitable overall, it will be streamlined and simplified, making this one of the best potential cryptocurrency mining opportunities out there.

With Ethereum, you get a rising cryptocurrency with a decent amount of support already in the market, where ETH is one of the more trusted options available.

Original article found here:

Posted by
Thomas Prendergast

 

What Are Cryptocurrency Debit Cards, Explained

What Are Cryptocurrency Debit Cards, Explained

1. What are cryptocurrency debit cards?

They are plastic cards, similar to your everyday bank card, but you can deposit cryptocurrencies on them.

Cryptocurrency debit cards are a relatively recent development in the Blockchain world. They were invented to solve the problem of using digital coins for day-to-day expenses. Obviously, you can’t just go to your nearest grocery store and pay for your shopping list with Bitcoins, not yet at least.

This is very inconvenient because it introduces an additional difficulty of searching for a place to exchange your cryptocurrencies to fiat money before you can actually start spending them. There have been several proposed ways to make cryptocurrency spending a more direct process and plastic cards are one of them.

2. What are the solutions for cryptocurrency spending?

The primary two are point-of-sale terminals and plastic cards.

Point-of-sale terminals are one of the proposed solutions. This is a piece of hardware installed at a shop, which interacts with a mobile wallet app on your phone and withdraws your cryptocurrency to make a purchase. However, they require a merchant to actively take interest in accepting digital currency payments and pay some money upfront for installing a terminal. As such, this approach is not easy to scale.

Plastic cards are a different, arguably better, solution. They take advantage of the existing Visa/MasterCard infrastructure – bank card terminals are already an available payment option in millions of shops around the world. Such cards don’t require the merchant to do anything. In fact, the cashier might not even know that you’re paying with a cryptocurrency because it’s seamlessly converted into the respective fiat currency by the card provider.

3. What types of cards are there?

Prepaid cards and debit cards, mainly.

The first option is a bit outdated by today’s standards. You pay a provider a certain amount of Bitcoins or some other cryptocurrency, and they send you a prepaid Visa/MasterCard with the equivalent amount of fiat money. After that, it works like any old debit card you can get at the nearest bank.

A more recent development is a debit card with an automated exchange system in the background. They allow you to deposit your cryptocurrency directly, via a web app. When the time of purchase comes, the card provider handles the process of converting your digital coins into the necessary fiat currency on the spot. From the merchant’s point of view, these are the same as prepaid or regular bank cards. However, they spare the user the need to exchange money – you simply deposit your Bitcoins or Ether and you’re good to go.

4. Where can I get one?

The providers of cryptocurrency debit cards are online companies with different backgrounds.

A simple online search will net you several key providers of cryptocurrency debit cards. By going to their websites, you will be able to order yourself one. This technology is on the verge of the digital and real world and is heavily regulated by governments worldwide.

Because of that, they almost always require you to undergo some sort of identity verification, submitting some sort of ID proof. Other than that, in addition to a small upfront payment, they are really easy to get.

5. If they’re so good, why aren’t they immensely popular?

It has more to do with the technology of cryptocurrency itself – confirmation times and transaction fees, in particular.

It’s true that the technology of cryptocurrency debit cards has been here for a while. You might be thinking: “if they make digital currencies so easy to spend and can be easily bought, why aren’t they much more popular?”

One of the primary, if not the main barriers to higher adoption is cryptocurrencies themselves. Bitcoin transactions have a 10 minute confirmation period on average. The fees are also significant, unlike in the old times, and are only getting higher. These two factors combined make Bitcoin payments barely suitable for small, everyday purchases – plastic card or not.

Some other currencies, such as Ethereum, have faster confirmation times and lower fees, but they’ve started getting popular quite recently. In fact, some of the cards were released before Ethereum entered the market.

6. Are there cards that support altcoins?

Yes, recently some cards have started appearing on the market and they allow you to deposit currencies other than Bitcoin.

TenX, for example, is a young project with an already working card that can be topped up with Ethereum and Dash, in addition to Bitcoin. Both these coins have much faster confirmation times and much lower transaction fees than BTC does.

In fact, TenX’s own technology COMIT (Cryptographically-secure Off-chain Multi-asset Instant Transaction) makes the system capable of accepting deposits in any cryptocurrency tokens that conform to a small number of requirements, such as having double-spend protection and multisig wallets.

With technologies like this, paying for a Big Mac at any McDonald’s using a cryptocurrency of your choice may actually be easier than you think:

Come to our daily live Webinars for more information.

Thomas Prendergast
Markethive Inc.

 

Be a Bitcoin Mining Millionaire

Bitcoin Mining Millions

How Bitcoin Mining Works

Where do bitcoins come from? With paper money, a government decides when to print and distribute money. Bitcoin doesn't have a central government.

With Bitcoin, miners use special software to solve math problems and are issued a certain number of bitcoins in exchange. This provides a smart way to issue the currency and also creates an incentive for more people to mine.

 

Bitcoin is Secure

Bitcoin miners help keep the Bitcoin network secure by approving transactions. Mining is an important and integral part of Bitcoin that ensures fairness while keeping the Bitcoin network stable, safe and secure.

Bitcoin mining is the process of adding transaction records to Bitcoin's public ledger of past transactions or blockchain. This ledger of past transactions is called the block chain as it is a chain of blocks. The block chain serves to confirm transactions to the rest of the network as having taken place.

Bitcoin nodes use the block chain to distinguish legitimate Bitcoin transactions from attempts to re-spend coins that have already been spent elsewhere.

What is Bitcoin Mining?

What is Proof of Work?

What is Mining Difficulty?

What is Bitcoin Cloud Mining?

What is the Blockchain?

Bitcoin mining is intentionally designed to be resource-intensive and difficult so that the number of blocks found each day by miners remains steady. Individual blocks must contain a proof of work to be considered valid. This proof of work is verified by other Bitcoin nodes each time they receive a block. Bitcoin uses the hashcash proof-of-work function.

The primary purpose of mining is to allow Bitcoin nodes to reach a secure, tamper-resistant consensus. Mining is also the mechanism used to introduce Bitcoins into the system: Miners are paid any transaction fees as well as a "subsidy" of newly created coins.

This both serves the purpose of disseminating new coins in a decentralized manner as well as motivating people to provide security for the system.

Bitcoin mining is so called because it resembles the mining of other commodities: it requires exertion and it slowly makes new currency available at a rate that resembles the rate at which commodities like gold are mined from the ground.

What is Proof of Work?

A proof of work is a piece of data which was difficult (costly, time-consuming) to produce so as to satisfy certain requirements. It must be trivial to check whether data satisfies said requirements.

Producing a proof of work can be a random process with low probability, so that a lot of trial and error is required on average before a valid proof of work is generated. Bitcoin uses the Hashcash proof of work.

What is Bitcoin Mining Difficulty?

The Computationally-Difficult Problem

Bitcoin mining a block is difficult because the SHA-256 hash of a block's header must be lower than or equal to the target in order for the block to be accepted by the network.

This problem can be simplified for explanation purposes: The hash of a block must start with a certain number of zeros. The probability of calculating a hash that starts with many zeros is very low, therefore many attempts must be made. In order to generate a new hash each round, a nonce is incremented. See Proof of work for more information.

The Bitcoin Network Difficulty Metric

The Bitcoin mining network difficulty is the measure of how difficult it is to find a new block compared to the easiest it can ever be. It is recalculated every 2016 blocks to a value such that the previous 2016 blocks would have been generated in exactly two weeks had everyone been mining at this difficulty. This will yield, on average, one block every ten minutes.

As more miners join, the rate of block creation will go up. As the rate of block generation goes up, the difficulty rises to compensate which will push the rate of block creation back down. Any blocks released by malicious miners that do not meet the required difficulty target will simply be rejected by everyone on the network and thus will be worthless.

The Block Reward

When a block is discovered, the discoverer may award themselves a certain number of bitcoins, which is agreed-upon by everyone in the network. Currently this bounty is 25 bitcoins; this value will halve every 210,000 blocks. See Controlled Currency Supply.

Additionally, the miner is awarded the fees paid by users sending transactions. The fee is an incentive for the miner to include the transaction in their block. In the future, as the number of new bitcoins miners are allowed to create in each block dwindles, the fees will make up a much more important percentage of mining income.

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Published  by

Thomas Prendergast
CEO and Founder
Markethive Inc.