Gold Rush in Cryptocurrency 2022
Cryptocurrencies like Bitcoin, Etherum, Tether, etc have now become household names, almost as recognizable as the USD and the Pounds. Looking back to about a decade ago, this was not so.
What then changed? These digital currencies have brought, and continue to bring, in fresh dawn of investment of assets- more like a gold rush but in an online form.
This means that although cryptocurrency does not possess a physical construct, it has remarkable physical value as a form of exchange for online assets.
And every time you buy(and store in a safe wallet) or sell with crypto, your transactions will be added to the blockchain-a database for transactions.
Statista reports that cryptocurrency wallets have monthly downloads of about 5.6 million worldwide, with the world’s market of blockchain technology expected to rise up to $39 billion by 2025.
However, its lack of regulation and instability make many weary of its Genuity. Yet, many believe it has great prospects and positives that outweigh its known negative side.
Although there are several types of cryptos, Bitcoin remains the most common on the market. Others are called alternative coins. Altcoins in short. Currently, there are above 10,000 altcoins in the market which include, Nev (NEO), Ether (ETH), Dogecoin(DOGE), Litecoin (XLM), Stellar (XLM). What Does hоdling cryptocurrencies really mean?
Gold Rush: Cryptocriminals
Because of its decentralized system, brought by a technologically inclined society, economists and investors are in a bustling state. Cryptocurrency works independently of brokers and banking rules. It can be likened to the gold rush of 1848 to 1855, where no claims, or laws ruled.
As were recorded cases during the physical gold rush of the mid-1800s, many crypto criminals now lurk around, looking to exploit ignorant cryptocurrency holders by introducing malware to steal from their assets, a process called “cryptojacking”
VMware Carbon Black for six months looked into ways dark webs buy and sell crypto-malware, supporting a rapidly growing economy that is designed to steal some of the highest sought-after coins and tokens on the cryptocurrency market.
In May 2021, when authorities in China took action against the mining of cryptocurrency, miners in other parts of the world experienced a great increase in earnings. The action saw an ushering in of what can be likened to the modern-day gold rush. However, disruptions in the supply chain and logistical setbacks have made capitalization of the golden opportunity really difficult.
Many cryptocurrencies, including Etherum and Bitcoin, depend on mining as it plays an important role in their functioning. Miners compete to solve multiple complex calculations-showing Proof of Work- generating what is referred to as the hash. The hash makes whoever wins the contest eligible for the reward.
Anyone with a computer can make an attempt to mine, but today the major chunk is carried out by professional mining enterprises operating hundreds of thousands of specified chips on dedicated databases.
According to the data report from the Cambridge Centre for Alternative Finance, 46% of all cryptocurrency mining occurred in China in April. However, in May, the Chinese authorities came down upon the claim that crypto mining consumes a lot of electrical energy and that it poses a danger to financial sustainability. The step caused all that percentage to wither in a matter of weeks.
With the biggest competition out of the way, miners from other parts of the world began to have their profits skyrocketing. In addition to the start of the increase in the price of Bitcoin in June, the ban catalyzed miners to begin to find ways to set up new operations elsewhere, relocating all their stranded chips in China.
But that’s not an easy thing to do, says the Compute North CEO, Dave Perill. Compute North builds special data centers that miners can use.
“We’ve seen newer miners that haven’t done this before thinking you can buy 10,000 machines and just find a spot to plug them in,” he says. “It can take six to twelve months to build up those kinds of facilities.”
With operations in South Dakota, Nebraska, and Texas, Compute North is rapidly expanding to meet up with demands, Perill says. But they have all of their space reserved until next year’s second quarter.
This is a mirror of the problems miners with idle mining chips are facing all over the world.
“If you’re not plugged in, you’re not making money,” Dr. Perill says, “The math is real easy—zero revenue. It’s literally a melting ice cube, it’s a depreciating asset.”
Also Read: 7 Free Online Courses
Airdrops are a great way to receive free coins and tokens. Crypto Airdrop is a type of marketing strategy that gives people free tokens in exchange for their attention or participation.
Like it or not, cryptocurrency is proving to be as real as the gold rush of the mid-1800s. Some are satisfied with just a slice, many are interested in big chunks of it. However, what makes it difficult is knowing how it works; what type to invest in; and how much.
Whether Cryptocurrency is the way to the future, or is the future of an ever-growing world of technology, is unclear. What is important is to know that this is an opportunity of a lifetime that you too can key into.
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