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Intel Could Make Bitcoin Mining Profitable Again

One of the biggest barriers to entry for small-time bitcoin miners is cost. Intel Corp. (NASDAQ:INTC), the largest U.S. semiconductor maker by market value, is looking to change that.

In a recent United States Patent Application, California-based Intel revealed plans for a unique hardware application dedicated to bitcoin mining. Intel originally filed a patent application for what is being deemed a Bitcoin mining hardware accelerator in September 2016.

Intel’s bitcoin accelerator hardware would aim to make mining of the digital currency less energy intensive, potentially increasing profitability along the way.

More Details

“As opposed to physical currency systems backed on natural resources (e.g., gold), Bitcoins may be created by using software and hardware systems to solve a series of mathematical algorithms (e.g., Secure Hash Algorithm 256 (SHA-256)),” according to Intel’s patent application.

Bitcoin algorithms require massive processing capabilities, resulting in higher energy costs to miners.

“When the Bitcoin mining algorithms are solved in a way that satisfies certain predefined conditions, a new block is added to the blockchain and a certain number of Bitcoins are awarded to the miner; thereby introducing new Bitcoins into the eco-system,” according to the patent application. “Bitcoin mining algorithms are inherently difficult to solve, and thus require large amounts of processing power. Because of the large amount of power utilized, and the relatively high cost of that power, mining Bitcoins can be a very costly endeavor. In some embodiments, the cost to mine a single Bitcoin may exceed the value of the mined Bitcoin.”

Other Costs

Cryptocurrency miners face other costs, including graphics cards. The graphics cards, usually made by Intel rivals AMD Inc. (NASDAQ:AMD) and NVIDIA Corp. (NASDAQ:NVDA) were initially made for gamers, but demand for those cards surged as the digital currency universe grew. Demand for those cards has soared so much that they are becoming scarce, leading to skyrocketing costs for gamers and digital currency miners.

While cryptocurrencies are not traditional commodities, such as gold or oil, there are break-even prices associated with mining cryptos. When the price of those commodities fall, producers can opt to scale back production and wait for higher prices. For example, an oil company that breaks even at $40 per barrel, could consider reducing output when prices linger around $45 per barrel.

Today, some bitcoin miners may be facing a similar scenario. At this writing late Sunday night, bitcoin traded just over $6,900, well below its December highs around $20,000. Some market observers believer the break-even price for many bitcoin miners is $8,000, a price the largest digital currency has not touched since late March.

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Bitcoin

Bitcoin Price Hits 8-Month High Close to $7K

There seems to be no stopping the bitcoin (BTC) freight train.

The leading cryptocurrency by market value jumped to $6,964 at 06:00 UTC today on Bitstamp, the highest level since Sept. 5, 2018, having found acceptance above the crucial 200-week moving average at $6,500 in early Asian trading hours.

Prices have set a new multi-month high for the fourth straight day and have rallied in excess of over 70 percent in the last 5.5-weeks.

Notably, with the sharp rally, the 100-day MA of bitcoin’s price has moved above the 200-day MA. That is the first bullish crossover between the two averages since July 2015.

The development further confirms the long-term bearish-to-bullish trend change signaled by several technical indicators, including a golden crossover, over the last few weeks.

The moving average studies, however, are lagging indicators and have limited predictive abilities, as they take old price history into account.

Even so, investors may take heart as a similar crossover in July 2015 was followed by a 2.5-year bull run.

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Binance

Binance got hacked for $40 Million Dollars in Bitcoin, is your money safe?

The short answer is Yes, your money is safe.
Fortunately, Binance was prepared and your money is safe in due to SAFU. Meaning the ‘Secure Asset Fund for Users’ will cover this completely. This is the very reason Binance is self-insured.

Technically speaking the Binance exchange itself was not hacked, it has officially been stated by Binance that a large number of API Keys, 2FA Codes, and other user info was acquired by said hackers utilizing techniques such as phishing, viruses and other types of digital attacks. This means that it was user accounts that were compromised by the users themselves and not Binance.

In an age where digital security is more important than ever, this is a stark reminder to keep your data safe and secure at all times.

TLDR About the Binance Hack:

• 7000 BTC was stolen
• The BTC was stolen from Binance’s Hot Wallet
• Binance’s Hot Wallet holds only 2% of their total holdings
• All funds are insured and do not affect users

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Bitcoin

Why Is Bitcoin Not Taking Off In 2019?

PEAK BITCOIN

As you are likely referring to the price, Bitcoin is quite frankly doing what it has always done, as in go through a cycle. Right now it appears to be in the accumulation phase before it starts to climb and then vault higher than it was before.

If you take a look at this Bitcoin chart and go back to what happened in the run up to late 2013, it extremely similar to 2017, and then what happened directly after in 2014, 2015 and 2018, 2019 is quite similar.

 

We can see from the chart that there was a prior accumulation phase happening throughout 2015 and 2016 after the drop in 2014 subsequent to the spike in 2013. But this is dwarfed by the spike that happened in late 2017.

The other point to note is that Bitcoin is not unique when it comes to this cycle, it has happened before in many different markets. It’s just that Bitcoin is a new technology phenomenon that is following a very similar path. Of course we can never be certain as to how long the current phase will last, but when it’s done I suspect a lot of people will look back once again and wish they had accumulated during this phase.

Finally, whether it still has further to drop or not won’t really have any substantive bearing on the ultimate long term trajectory in our honest opinion.

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