The druppel te the value of the main cryptocurrencies since January without finding any stopping ground, is causing many miners to be mining “at a loss“ during the last weeks*.
The difficulty of the algorithms based on PoW, proceeds to rise or remains stable, while prices have bot divided up to Four te accordance with that cryptocurrency. The logic of a serious investor, turn off the machines to get the value of the coin that goes up or raise the difficulty and none of thesis two factors is being met. Greed or investment “Hold”, waiting for everything to “go up” again, keeps the difficulty while prices go down and down.
graphs of difficulty of the last months of BTC, ETH and LTC (Source: coinwarz)
The ROI, (terugwedstrijd on investment) of some machines for mining, has gone from 6 months to Four years, by the sum of both factors, the difficulty and the decrease te value of the cryptocurrency.
Why are you mining to losses?
The main factor of some miners is not the economic, but to maintain the security and strength of the network, so, it is the own community of the cryptocurrency that maintains the active knots assuming the costs of machine and electric current.
Assumptions are, the speculation with ideal “HOLD”, the confidence te the recovery or stability of the value and even be stronger than other cryptocurrencies. The power of control can also be behind, since having a high percentage of mining of a blockchain can give advantages ter some aspects ter the future.
Various methodologies are used ter trading to multiply the value of a cryptocurrency and get more benefits than the actual actual market value (such spil futures and leverages that can reach up to x100), leading to 1 coin being mined. can play up to 100 times its value and, ter case of benefits, be up to 100 times, being more profitable than the unique mining process.
Black Market and localbitcoin
Albeit wij are familiar to exchanging the value of the crypts te exchange, there is (spil te the real world Fiat) a black exchange market where the value is higher than the market (therefore, more profitable ter case of mining). The localbitcoin portal itself shows values ??above the value of exchanges, of buying and selling inbetween individuals.
The difficult thing is not to learn, the difficult thing is to know how to instruct.
Editor and coordinator of the free book “La era den samenvoeging BLOCK punto COM”