How to Assess the Current Cryptocurrency Scene?

December 1, 2019 by Sean Fifield

How to Assess the Current Cryptocurrency Scene?

After Satoshi Nakamoto changed the world forever with his invention, Bitcoin, the cryptocurrency market saw a massive rise. While Ethereum, Litecoin, and Ripple were some of the most popular cryptocurrencies after Bitcoin, while the total number of cryptocurrencies was more than 2,000. By 2017, the industry touched its peak as Bitcoin surpassed the $20,000 figure – a watershed considering it was not even $1 in 2010. However, then came the bloodbath…

However, after a crash occurred, following which the prices of Bitcoin and all other cryptocurrencies took a severe beating. In the midst of this, there were some projects that were exposed as scams. Some cryptocurrency exchanges were hacked, resulting in loss to many cryptocurrency owners. Hence, skeptics came forward with the million-dollar question: is cryptocurrency dead?

Is Cryptocurrency Dead?

Quite contrary to the general view, cryptocurrency is nowhere dead. Although prices took a nosedive in the last two years, volatility is slowly fading away. This may not excite the speculators; it is a great sign for the institutional investors – those who hold the key to take the cryptocurrency adoption to the next level. Some analysts believe that this institutional money will only grow over the next few years. There are also talks on moving cryptocurrencies to the Nasdaq, a move that can bolster the credibility of Blockchain greatly, and position it as an alternative to present financial options. There are calls for ETFs (exchange-traded fund) too, which is expected to simplify investment in Bitcoin and other cryptocurrencies.

Moreover, the foundational technology of cryptocurrencies Blockchain is becoming popular with real-life impact all over the world. Major tech firms, banks, and many businesses are already working with cryptocurrencies. If you are worried about regulations, then keep in mind that once a critic of cryptocurrency, China, is now competing with the U.S. by issuing digital money to streamline its government services. Last month, President Xi Jinping signaled that the Chinese Government viewed Blockchain as an important piece of the puzzle – one that can elevate the country to become a high-tech superpower.

Moreover, it is expected that Blockchain will be integrated with other modern solutions like IoT to address a slew of problems. For instance, it can provide a secure method to protect customer data. This can especially contribute a lot in healthcare institutions where privacy is highly critical. Similarly, the transparency cryptocurrencies offer can revolutionize the supply chain industry where machine learning can be used to generate real-time information about goods and create optimized routes.

Final Thoughts

Don’t judge the cryptocurrency market with their prices. These crashes have in fact cleansed the industry off weak platforms and have allowed better ventures to make a difference. These are the platforms that have highly-skilled teams who are dedicated to resolving centralization issues with their innovative solutions. As governments and industries are ramping up their adoption strategies for digital assets, cryptocurrencies clearly are here to stay.

Cryptocurrency Markets

Coinbase Going Backwards

April 28, 2018 by Sean Fifield

Coinbase Going Backwards – Elimination of Key Client Services + Needlessly Complicating Merchant Transactions = Disaster

Coinbase going backwards has made life much more difficult the past few weeks. Up until March I could sell Bitcoin and turn it into usable cash in less than 30 minutes right from my laptop. Then Coinbase utterly eliminated PayPal which now means I need to wait DAYS for a bank transfer. In the “good old days” of just last month I could’ve sold Bitcoin on Coinbase, had the proceeds transferred directly to PayPal within seconds and then have the money sitting in my checking account in less than 30 minutes. All I would need to do is agree to PayPal’s pittance of a 25 cent transfer fee via debit card.

But alas PayPal has disappeared from Coinbase altogether which has rendered this quick, inexpensive solution impossible.

But wait it gets better. An email I received from Cheapair just last week is further proof of Coinbase going backwards:

A Letter to Our Bitcoin Customers

Dear Traveler,

Since 2013, CheapAir.com has been accepting Bitcoin as a payment option for flight and hotel bookings and we hope to continue to do so well into the future. During this time, it has been a thrill to meet so many extremely smart, incredibly passionate members of the Bitcoin community and we appreciate to no end the support and loyalty that the group has shown us.

However, today we face some challenges and we’re asking for your help in finding solutions. We were recently informed by our processing partner, Coinbase, that they will no longer support “custodial” solutions for merchants, and are removing a number of the tools and features that we rely on to accept Bitcoin from CheapAir.com shoppers. These changes are scheduled to occur in a matter of weeks.

Rather than dwell on this, we are taking this as an opportunity to deliver to you an even better solution with even more digital payment options. In the coming weeks, we hope to:

Begin accepting additional digital currencies like Bitcoin Cash, Dash, and Litecoin. We have already begun testing these.
Establish a dedicated customer service phone line and email inbox staffed with advisors who have a deeper understanding of digital currencies and how they work. Admittedly, that’s been a challenge with our call center team (my fault, not theirs) and I know this has led to some frustration.
Automate some processes that have been semi-manual, so we can issue refunds more quickly, or generate/re-generate a BTC invoice for a booking made over the phone or by email.

To go where we want, however, we need a reliable processing partner. The reality is, as much as we love Bitcoin, our travel supplier partners (airlines and hotels) just aren’t there yet. Because we have to immediately transfer to them most of what you pay to us, we have no choice but to convert BTC to fiat as payments come in. Coinbase has been providing that service for us, but at the end of the month they are getting out of that business, leaving us scrambling for an alternative.

Our intention at this point is to use BitPay as a processor. We have had a great experience with them so far and our integration is largely complete. But our one giant concern is that Bitpay does not support “non-payment protocol wallets” (wallets that aren’t BIP-70 compliant). So if you do not have a compatible wallet, you would have to get one and use it as an intermediate stage for your Bitcoin payment.

We understand what Bitpay is trying to accomplish. The issues they are trying to address–delayed or incorrect payments–are real and were especially rampant back in December and January when transaction volumes spiked. On the other hand, I am not keen on the idea of asking our customers to, in many cases, do more work or change wallets just to be able to transact with us.

This is where we’d love your input. Do you buy from other Bitpay merchants? Do you find the BIP-70 wallet requirement to be reasonable or too onerous? Candidly, would this make you more or less likely to do business with us?

Please feel free to reach out with thoughts or suggestions by commenting on our blog, tweeting @CheapAir, or emailing me directly at jeff@CheapAir.com.

Thank you again for your continued support,

Jeff Klee
Founder and CEO

So Coinbase lost a large corporate client and Bitpay wins one. That’s the very nature of the free market at work.

Regular readers will easily recall how I bought a plane ticket with Bitcoin via Coinbase on CheapAir.com earlier this month in a simple, hassle-free transaction.

I am truly disappointed in Coinbase. For so long I’ve been seeing them do so many good things to move cryptocoin forward into mainstream acceptance. Up until recently I have truly been a fanboy. All of the recent announcements of promising new hires not withstanding, it’s impossible not to see that Coinbase going backwards is a real thing. And a real sad thing.

Coinbase going backwards needs to stop. Coinbase gave up so much ground they won by their asinine actions lately. They need to resume forward thinking and decisive action if they hope to maintain their dominant position as a cryptocoin exchange.

As an extension of my thinking I am going to visit a Bitcoin ATM machine here in the Las Vegs valley. I expect an attempted robbery vis a vis their published exchange rate, transaction fees, etc. Expect a full report from me within the next 48 hours. Personally, I expect to give Coinbase an expanded business model as a result. Stay tuned!

bitcoin coinbase

Cryptocurrency Markets

Buying Stuff With Bitcoin

April 9, 2018 by Sean Fifield

Buying Stuff with Bitcoin – It’s a Real Thing. Not Just Lambos or Mansions Either.

Buying stuff with Bitcoin has been real for years. From buying a house with Bitcoin to the legendary “Lambo” to anything else, Bitcoin is gaining wider acceptance all the the time. I just bought a plane ticket using Bitcoin on CheapAir.com. CheapAir.com is one of the earliest adopters of Bitcoin as a payment method online and certainly the pioneer in the travel sector.

Buying stuff with Bitcoin got a lot easier thanks to Coinbase and their super-simple to install merchant tools. In my base Coinbase recognized me immediately which makes buying stuff with Bitcoin even easier. But even if I weren’t a Coinbase client I could’ve used any Bitcoin wallet. And from there I had my choice of Bitcoin, Bitcoin Cash, Ethereum or Litecoin.

Here’s how easy it is to buy stuff with Bitcoin, in my case paying for my airline ticket:

It was actually faster and easier paying with Bitcoin than a credit card. Many merchants accept Bitcoin today including Dish Network, Microsoft, Shopify , NewEgg, Overstock among tens of thousands of companies large and small. Bitcoin’s wider acceptance for payment will solidify its position as THE cryptocurrency standard not just for investors but for consumers as well.

Buying stuff with Bitcoin – be it a pizza or a diamond ring or a luxury cruise – silences the critics that continue to pound the table declaring Bitcoin has no value and is useless. I’m entertaining the idea of living an entire year on only what I can buy with Bitcoin. This experiment with lifestyle design should conclusively end the debate of Bitcoin’s relevance once and for all. In the back of my mind I envision buying a mansion, a Lambo and hiring a personal chef. Then I consider a wiser impact by simply grocery shopping, putting gas in the car or buying some books. Wait and see.

bitcoin ecommerce

Cryptocurrency Mining

Should You Buy Used Mining Rigs?

February 26, 2018 by Eric Eddy

Should You Buy Used Mining Rigs? Yes. Well maybe…. And perhaps no.

The option to buy used mining rigs is a tempting one. With the madness surrounding crypto mining and alt-coins, many people are going to look into building their own mining rigs. While this isn’t a huge undertaking for those who are quite computer savvy, what about those who aren’t? Building a mining rig yourself can be quite daunting if you don’t understand the basics of building a computer from the ground up. This would lead many to look towards eBay and Craigslist to shop for used mining rigs that other miners are trying to sell. But is it worth it?

Arguments In Favor to Buy Used Mining Rigs

Difficult to Source

Sourcing hardware for a mining rig build can be somewhat difficult. The main issue that one would encounter in acquiring the hardware for a mining rig is limitations on GPU quantities you can purchase. Many retailers, such as NewEgg.com, will have a limit of one per customer per purchase. Getting the bulk of your GPUs may be difficult, so buying a rig with all the parts sourced may be an attractive option to some.

Assembly is Complicated

Building a mining rig is also quite an undertaking in and of itself. It requires more than a working knowledge of assembling a normal desktop PC, as you’ll be required to run PCI-E USB riser cards and possibly need to daisy-chain power supplies in order to get the entire rig up and running. Buying used mining rigs with all of the assembly, troubleshooting, and OS installation and configuration done for you may be an attractive prospect.

Arguments Against Used Mining Rigs

Buyer Beware

As with any used PC, you can never be fully certain how old all the parts are or how long they will last. Additionally, people selling their mining rigs are looking to get out of the mining business altogether, so their rigs will be sold as-is. So a warranty will most often be off the table when dealing in used mining rigs. Once you drive off with it, it’s yours. When you buy used mining rigs you are taking on no small amount of risk.

Used rigs could also contain dated or aging hardware. Dated hardware means the GPUs are from previous generations, and thus offer less hashing power. Aging hardware could mean your used rig won’t mine for a long enough period of time to recoup your investment, much less turn a profit. A key talking point when speaking with the seller would be to ask how long the rig has been mining. If it’s been up and running for longer than a year, it’s probably best to not buy it – you’re on borrowed time. And if the hardware is dated, avoid it altogether. Dated hardware isn’t able to keep up with the mining difficulty to produce viable hashing power. This means it will take far longer to recoup your initial investment, if you recoup it at all.

Inflated Pricing

Price is also a major consideration for buying mining rigs. Due to the nature of cryptocurrency mining, GPU prices are overly inflated, even on the used market. This was covered more in-depth in my previous article. This will lead to mining rigs being sold at above retail price for new equipment, as even used GPUs are being sold for more than MSRP. And you can bet your bottom dollar that any miner looking to get out of the cryptocurrency mining game will look to fully recoup all the money they spent on their rig, so they will sell it for the highest price that people will pay. Given the hype around crypto mining, this means seeing used mining rigs going for north of $4,000 will be the norm.

The main thing one should always do when looking to buy used is to research the price of the individual components before contacting the seller. Purchasing etiquette dictates that one should do all their research regarding pricing before they arrange to meet the seller. This will allow you room to haggle if you know what you’re buying. Plus, it’s considered rude to meet with a seller and begin research while you’re on their time.

Typical Craigslist Ads for Used Mining Rigs

My Opinion: Should You Buy Used Mining Rigs?

With the main pros and cons laid out, my professional opinion is that it can be reasonable to buy used mining rigs. If, and I stress IF, you can find a good deal where the sum of the parts is at or below MSRP, it may be worthwhile for you to buy a used rig. Since the rig will come assembled, you should expect to pay a little extra for that luxury. How much extra you find reasonable is completely subjective.

Now for my conditions:

Condition 1: You must be comfortable replacing parts if/when they go out. I would highly recommend you only buy a used rig if you have a friend or loved one with the knowledge necessary. That, or you’ll need to be willing to spend hours pouring over how-to’s and in-depth guides on the web to figure out how to troubleshoot and replace any issues that arise with your rig.
Condition 2: One should be able to comfortably absorb the cost of the mining rig if the entire enterprise goes belly-up. Buying used mining rigs will almost never come with a warranty or guarantee.
Condition 3: Understand the hashing power of the rig you’re buying. It will be essential to understand just how much cryptocurrency you should expect to mine with your rig so you can plan your ROI. If the rig won’t pay for itself within a year, don’t buy it.

Disclaimer

Given the volatility of the cryptocurrency market and the inherent dangers of investing in cryptocurrency, I must add the following disclaimer: the above article was written as my opinion, and should be taken as such. We (myself and CryptoCapers.com) are not responsible for any losses incurred by any reader investing in the cryptocurrency market, mining rigs, or ASIC mining equipment, using any advice we have published as guidance in buying used mining rigs or any other mining hardware. The cryptocurrency market is extremely risky and volatile, and our advice should only be used as part of one’s research into any crypto mining or investing. If you are in doubt, or if high risk isn’t for you, then don’t pull the trigger. But if you’re eager to take a risk in hopes of making real money in the future, then by all means, join us and the rest of the crypto pioneers and invest in mining your own cryptocurrency.

bitcoin crypto crypto mining cryptocurrency ethereum litecoin mining rig monero