Countries Banning Cryptocurrencies
Cryptocurrency has been a hot topic amongst governments, financial institutions, and tech enthusiasts for quite some time. While some countries have embraced its potential for revolutionizing the financial sector, others have taken a much more conservative stance, banning the use of Cryptocurrency within their borders. That is due to many reasons, from its potential for money laundering to its lack of regulation. As a decentralized currency, it is not issued by any government or financial institution, offering users a degree of anonymity but also making it difficult for governments to control and monitor. Despite these concerns, there is still much potential for Cryptocurrency. Many countries are looking for ways to regulate and control its use.
Overview of Cryptocurrency
Cryptocurrency is a digital or virtual currency that uses encryption techniques to generate monetary units and verify the transfer of funds. Unlike traditional paper currencies, cryptocurrencies are not printed or controlled by any government authority, making them decentralized and highly accessible. They are often traded online and are independent of any government’s monetary policy. In addition, many cryptocurrencies use blockchain as a distributed ledger for verification, making them highly transparent and secure. Cryptocurrencies do not have a physical form, so they cannot be held in a person’s hand or kept in a physical place. However, they can be stored digitally, in a virtual wallet, on a computer, or online account. Digital tokens traded online are known as “cryptocurrency.” People sell Cryptocurrency as a commodity, on a peer-to-peer network, or as a service.
Reasons why some countries have banned Cryptocurrency
There has been a lot of debate about the potential for Cryptocurrency in the future, with some countries embracing it and others banning it. While it is still unclear how Cryptocurrency will impact the global economy, there are many reasons why countries may ban it. These reasons include a lack of control over the currency and its regulation. While governments are well versed in centralized currencies, like the USD, and how to control them, they need to learn how to control decentralized currencies like Cryptocurrency. Those, as mentioned earlier, can lead to a lack of control over the currency, making it difficult for governments to track and regulate. Security concerns: Due to the potential for money laundering, some countries have banned Cryptocurrency, citing security concerns. In addition, their decentralized nature allows people to use virtual currencies more anonymously than traditional currencies like the USD. That makes it a more attractive way to launder money. Potential for market distortion: As Cryptocurrency is still a relatively new concept, and its long-term impact is unclear, some countries have banned it to protect their domestic currency. Some governments have been concerned that Cryptocurrency could become so popular that it could distort the market, potentially leading to an adverse economic impact.
Benefits of Cryptocurrency
Countries that have banned Cryptocurrency may want to reconsider their stance, as decentralized systems have many benefits. Some benefits include a decentralized system: Cryptocurrency is decentralized, meaning it is not controlled or regulated by a single entity. Unlike centralized currencies like the USD, which a central government controls, decentralized currencies do not have a single governing authority or a central bank. That makes it a more transparent and potentially more reliable system. Low transaction costs: Due to a lack of regulation and decentralized nature, cryptocurrencies have lower transaction costs than centralized currencies. That means that the costs of making payments with Cryptocurrency are much lower than those with USD.
Efforts to regulate Cryptocurrency
While some countries have banned Cryptocurrency, others have embraced it and are looking for ways to regulate and control its use. Some of these countries include the following: Japan has been a strong advocate for using cryptocurrency and blockchain technology, becoming a global leader in these areas. In 2017, they introduced a new law that legally recognized Cryptocurrency as a payment method and created a regulatory framework to oversee its use. United States: The United States introduced the “first coin offering (ICO)” in 2013, with “Bitcoin” as its first coin. Since then, there has been a significant increase in legal and illegal ICOs. The U.S. Securities and Exchange Commission (SEC) is working to crack down on ICO fraud while providing a clear regulatory framework for ICOs, including Cryptocurrency.
Potential for Cryptocurrency
If countries can regulate and control cryptocurrency use, there is potential for it to be widely adopted, offering numerous benefits to users. Better access to Cryptocurrency provides better access to financial security to people in countries that have banned it. That can be particularly important for people in developing countries with limited access to financial services. Less expensive: Cryptocurrency can be less expensive than traditional banking services, as it does not incur transaction or service fees.
Impact of Cryptocurrency on global markets
Cryptocurrency has the potential to impact a variety of markets, including financial markets. While it is still unclear how it will impact these markets, Cryptocurrency has the potential to impact financial markets due to its potential to disrupt the traditional banking industry. In addition, it could significantly impact financial markets by attracting investors as it becomes more widely adopted. International remittance: Cryptocurrency has the potential to impact international remittance significantly. As mentioned before is because it is decentralized, making it easy to send funds across borders, as opposed to traditional methods.
Challenges of regulating Cryptocurrency
While many countries have been working to find ways to regulate and control the use of Cryptocurrency, it is a challenging task. Some challenges of regulating cryptocurrencies include the following: – Defining Cryptocurrency: One of the challenges of regulating Cryptocurrency is defining it. Cryptocurrencies are used in various ways, making it challenging to describe them. That can be problematic if a country tries to regulate them, as they must determine what rules to apply to each use. Measuring potential: Another challenge with regulating Cryptocurrency is measuring its potential. While measuring the potential for a centralized currency like the USD may be easy, it is much more challenging to measure the potential for decentralized currencies.
Benefits of regulating Cryptocurrency
If countries can regulate and control the use of Cryptocurrency, several benefits may come with it. Some of these potential benefits include the following: Better access countries that regulate Cryptocurrency may be able to improve access to financial services, particularly for people who currently do not have access to financial services. Increased consumer trust: Security issues, including hacks, fraud, and scams, have hit cryptocurrencies and decreased consumer trust. Countries that regulate Cryptocurrency may be better able to protect consumers, increasing consumer trust in the industry. Better control: Regulating Cryptocurrency may make it easier to track cryptocurrency funds and help governments gain better control over their financial systems.
Conclusion
Cryptocurrency has the potential to be a revolutionizing force in the financial sector. While some countries have banned Cryptocurrency due to concerns related to money laundering and lack of control, others have embraced it and are looking for ways to regulate and control it. If countries can regulate Cryptocurrency, numerous benefits may come with it, including better access, increased consumer trust, and better control.
An amazing 18,000 businesses are now offering cryptocurrency as a payment option – an incredible development!
Cryptocurrency as a payment option
Cryptocurrency has been gaining ground in recent years, and now it has hit a significant milestone: 18,000 businesses across the globe are offering it as a payment option! That remarkable development shows how far cryptocurrencies have come in a relatively short time. From tech giants like Microsoft to smaller businesses, more and more companies are recognizing the potential of digital currencies and are integrating them into their payment systems. That is a huge step forward for the cryptocurrency community, and this number will likely continue to grow. Furthermore, with many businesses now offering cryptocurrency as a payment option, it’s easier than ever to use your digital currency to buy goods and services.
What is cryptocurrency?
Cryptocurrency is a digital asset that works as a medium of exchange. It’s similar to regular currency but decentralized, meaning no government or financial institution controls it. Also, cryptocurrency transactions are recorded on a public ledger called a blockchain. There are many types of cryptocurrency, and they all have different features, use cases, and values. Bitcoin is the most well-known cryptocurrency, but there are many other digital currencies, too, including Ethereum, Litecoin, and Ripple. Many people use cryptocurrency as a payment method because it allows for fast, cost-effective, and secure transactions. That is especially true compared to other payment methods like credit cards and PayPal.
Benefits of cryptocurrency
Fast and cost-effective transactions – Cryptocurrency transactions happen nearly instantly and often don’t cost any fees. On the other hand, credit card transactions often take days to process and can cost as much as 5% of the transaction amount. – No risk of identity theft – Credit card fraud and identity theft are common concerns, but they don’t affect cryptocurrency users. Only you have access to your digital wallet, so you don’t have to worry about someone else using your credit card information. – Global availability – Cryptocurrencies are available for people in every country, even those with low economic or political stability. – Secure storage – Cryptocurrency wallets are encrypted and far less vulnerable to theft than a physical wallet. – Lack of exchange rate risk – Because cryptocurrencies are independent of any country’s economy, they don’t experience rate fluctuations like regular currencies.
Cryptocurrency statistics
Coinbase has more than 25 million customers. This a significant milestone, considering that Coinbase started in 2012. – Coinbase users are trading more than $50 million worth of cryptocurrency daily. That is another significant milestone, as less than two years ago, this number was less than $5 million daily. – The number of people searching “bitcoin” every month has tripled since October 2017. That is likely due to the cryptocurrency craze that started in November 2017. – The number of Google searches for “cryptocurrency” has increased almost tenfold since 2011. That indicates that more and more people are using and hearing about cryptocurrency. – The global cryptocurrency market is worth $750 billion. That makes cryptocurrency one of the fastest-growing markets in the world.
How businesses are integrating crypto
Businesses that accept cryptocurrency integrate it into their payment systems in various ways. For example, many online stores accept bitcoin as payment. Likewise, some businesses have installed crypto ATMs that you can use to buy bitcoin. Finally, some companies have created cryptocurrency gift cards that you can use to spend your digital currency wherever gift cards are accepted. In addition, many businesses are partnering with third-party providers like Coinbase Commerce to accept cryptocurrency as payment. These companies help businesses integrate cryptocurrency payments into their systems quickly and easily. The Businesses that accept cryptocurrency many are offering discounts or special offers to cryptocurrency customers. For example, Microsoft offers its employees a 50% discount on all Microsoft software if they purchase it using bitcoin. These types of partnerships are essential for making cryptocurrency more widely accepted. That has contributed significantly to cryptocurrency growth in recent years.
Why 18,000 businesses now accept cryptocurrency
Cryptocurrency offers many advantages over other payment methods, and businesses are starting to realize this. Cryptocurrency is secure, convenient, and fast and has no transaction fees. Credit cards, in comparison, are expensive and offer limited security. They’re also slower than cryptocurrencies and often have high transaction fees. Cryptocurrency also has no exchange rate risk, unlike regular currencies. That makes it ideal for international transactions, which is likely one of the reasons why more and more businesses are accepting cryptocurrency. Finally, many companies probably want to attract cryptocurrency customers, as they’re likely to spend more and return more often. Some companies, like Microsoft, may also want to attract cryptocurrency users because they’re on the cutting edge of technology.
The types of businesses that accept cryptocurrency
You’ll find that cryptocurrency is accepted by several businesses, from online shopping to dining out. You can use your bitcoin to buy everything from books to food, computer equipment, and even travel tickets. Many online shopping websites accept cryptocurrency, including Amazon, Barnes & Noble, and eBay. You can also use cryptocurrency to travel the world, thanks to companies like LocalBitcoins and CheapAir. You can even visit your local hair salon or gym and pay using crypto!
How to use cryptocurrency to buy goods and services
If you want to use cryptocurrency to buy goods and services, you’ll need to sign up for a digital wallet. That is where you’ll store your funds and receive payments. There are many types of wallets, but the most common are desktop and mobile wallets. If you want to use cryptocurrency to pay for goods and services, you’ll need to buy some cryptocurrency first. The easiest way is to sign up for a cryptocurrency exchange like Coinbase. Once you’ve set up your account, you can use your credit card or bank account to buy digital currency. You can then use your digital currency to pay for goods and services wherever it’s accepted. Many businesses also offer discounts or special offers to cryptocurrency customers.
The future of cryptocurrency
The cryptocurrency craze has brought digital currencies into the mainstream. More than 18,000 businesses are accepting cryptocurrency, and many more will follow suit. As cryptocurrency becomes more widely accepted, it will likely become more valuable. That is good news for current cryptocurrency owners, and it may entice others to invest in crypto. However, it’s important to remember that cryptocurrency is risky, so you should never invest more than you can afford to lose.
Furthermore, cryptocurrency is still a new technology and has its challenges. For example, it’s often difficult to buy and sell cryptocurrency, and the technology behind it can be jargon-heavy. Therefore, it’s crucial to educate yourself on cryptocurrency before investing.
Cryptocurrency courses
Cryptocurrency is still a relatively new technology, and many aspects still need to be better understood. However, a thorough understanding of digital currencies is essential to invest successfully. Luckily, there are many quality cryptocurrency courses out there that can help. You can find a list of cryptocurrency courses here.
Cryptocurrency services
As the popularity of cryptocurrency continues to grow, more and more companies are offering services. These services can help you buy and sell cryptocurrency, track your investments, and more. Coinbase is one of the most popular cryptocurrency services, and more will likely follow suit.
A Crypto Billionaire’s Rise and Fall
Introduction to Sam Bankman-Fried
Sam Bankman-Fried is a name that is quickly becoming synonymous with the cryptocurrency world. The founder, CEO, and majority owner of the cryptocurrency exchange FTX, Bankman-Fried, has seen his star rise faster than anyone could have anticipated. In just a few years, he has gone from an unknown tech entrepreneur to one of the most influential figures in cryptocurrency.
Though Bankman-Fried’s rise to fame and fortune has not been without its challenges. He has been the focal point of several controversies and legal challenges in recent months. In this article, we will explore the story of Bankman-Fried’s rise and fall and his actions’ social and legal implications.
The Rise of Sam Bankman-Fried
It all began in 2017 when Bankman-Fried co-founded Alameda Research, a crypto-trading firm. The company quickly established itself as one of the leading players in the market, and Bankman-Fried promptly made a name for himself.
In 2019, Bankman-Fried took the next step in his rise to fame and fortune when he founded the cryptocurrency exchange FTX. The exchange quickly became one of the leading platforms in the industry, and Bankman-Fried was hailed as a “crypto king” by some.
The success of FTX helped to solidify Bankman-Fried’s reputation as one of the most influential figures in the industry. He was regularly featured in the media and became increasingly well-known in cryptocurrency.
The Making of an Empire
Bankman-Fried continued to expand his influence in the industry, and in 2020 he launched many new initiatives. He opened the FTX Futures Exchange, quickly becoming one of the most popular platforms for cryptocurrency traders. He also initiated several other services, such as a platform for trading options and a cryptocurrency lending service.
By the end of 2020, Bankman-Fried had become one of the most influential figures in the industry, and his FTX exchange had become one of the most popular in the world. Some hailed him as a “crypto billionaire,” and his success seemed unstoppable.
However, it was not long before Bankman-Fried’s success came under fire. In 2021, several allegations began to surface regarding the practices of Bankman-Fried and FTX.
The Fall of Sam Bankman-Fried
In January 2021, some allegations began to surface that Bankman-Fried and FTX engaged in unethical practices. These included claims of market manipulation and insider trading.
This news quickly spread throughout the cryptocurrency world, and Bankman-Fried’s reputation began to suffer. In March 2021, the US Securities and Exchange Commission (SEC) announced that it investigated Bankman-Fried and FTX for possible securities laws violations.
The news of the investigation sent shockwaves through the cryptocurrency world, and Bankman-Fried’s reputation suffered even further. He quickly lost the public’s trust, and his influence in the industry was waning.
Bankman-Fried’s Legal Troubles
In April 2021, Bankman-Fried was charged with securities fraud by the SEC. In addition, he was accused of engaging in insider trading and market manipulation. The charges were serious and could carry significant penalties.
In response to the charges, Bankman-Fried and his lawyers issued a statement denying the allegations. They argued that the accusations were baseless and that Bankman-Fried had done nothing wrong.
Despite Bankman-Fried’s denial of the allegations, the SEC’s charges have cast a long shadow over his reputation. He is currently awaiting trial, and the case’s outcome could significantly impact his future.
The Aftermath of Bankman-Fried’s Fall
The charges against Bankman-Fried and the rumors of unethical practices have had a devastating effect on FTX. The exchange has seen its user base decline significantly, tarnishing its reputation. It is unclear whether FTX will be able to recover from this setback.
Furthermore, Bankman-Fried’s reputation in cryptocurrency is beyond repair. He is no longer the “crypto king” he once was and is now seen as a cautionary tale of the dangers of unethical practices in the industry.
Bankman-Fried’s Social Repercussions
The charges against Bankman-Fried have also had a significant social impact. The allegations of unethical practices have tarnished the entire cryptocurrency industry’s reputation and led to increased scrutiny of the sector.
The Bankman-Fried case has also led to a greater focus on the need for regulation in the industry. As a result, many regulators worldwide are pushing for stricter rules to ensure that the industry is more transparent and accountable.
The Future of Bankman-Fried
It still needs to be determined what the future holds for Bankman-Fried. He is currently awaiting trial, and the case’s outcome could significantly impact his future. If he is found guilty, he could face significant penalties, including jail time.
However, even if Bankman-Fried is found not guilty, it is unlikely that his reputation in the industry will ever fully recover. His name has become synonymous with controversy and unethical practices, and it is doubtful that he will ever be able to shake off this stigma thoroughly.
The Impact of Bankman-Fried’s Story
The story of Bankman-Fried’s rise and fall has significantly impacted the cryptocurrency world. His story has highlighted the need for greater oversight and regulation in the industry. In addition, his actions have led to increased scrutiny of the sector.
Furthermore, the case has shown that even the most successful entrepreneurs in the industry are not immune to controversy and legal troubles. It has shown that no one is above the law, and the industry will not tolerate unethical practices.
Conclusion
The story of Sam Bankman-Fried’s rise and fall is a cautionary tale for the cryptocurrency world. It has highlighted the need for greater industry oversight and regulation and shown that no one is above the law. The outcome of Bankman-Fried’s legal case remains undetermined, but one thing is sure: his story will continue to be a significant talking point in the cryptocurrency world for years to come.
Is Blockchain Secured, What is the Transparency🪙💲🤔#cryptoindustry #cryptovideos #cryptomarket
Is Blockchain Secured, What is the Transparency🪙💲🤔#cryptoindustry #cryptovideos #cryptomarket Blockchain technology is one of the most exciting developments in the world of business, and it will change how we do everything from banking to commerce. But is blockchain secure? And what is the transparency of blockchain? In this video, we’ll answer these questions and more. We’ll also explain the benefits of blockchain technology and show you how to secure your business. So if you’re curious about blockchain technology, this video is for you! #cyrpto #digitalcurrency #bitcoin #ethereum #altcoins #blockchain #cryptocurrency
The Rise of Cryptocurrency
The Rise of Cryptocurrency
A cryptocurrency, a digital currency or crypto coins is a digital asset structured to function as a virtual medium of transaction where public coin ownership information is stored in a distributed ledger usually in a trust model. This ledger is controlled by a network of individual servers all over the world that act as intermediaries to facilitate the safe, instant, and reliable transfer of funds. The major benefit of cryptosystems is the security properties that make them immune to hacking, fraud, and other threats that may come from a volatile banking system. The system is highly secure because it requires multiple backups to each and every public coin ownership so that in case of a disaster one copy will still be functioning.
There are several different types of cryptosystems including Litecoin, Dogecoin, Nxt, Peercoin, Terracoin, and Bitshares. Unlike traditional cryptocurrencies that use Proof of Work (POW) to award new coins, a Cryptocurrency is based on a Proof of Stake (POS). The POS system is an agreement among diverse individuals that govern the distribution and sale of their stake in the market capitalization. The distribution of this stake is done through what is called “exchange pools”. The advantage of these systems compared to centralized cryptocurrencies is that it is less prone to outside influences like a centralized organization. In the event of a decentralized system being hacked, unlike the case with a POW system, most of the exchanges can self-correct without having to resort to a voting process.
Unlike other forms of Cryptocurrency like stocks and shares, which have limited supply, Cryptocurrency is traded globally and there is a high demand for it. The demand for Cryptocurrency is attributed to several factors including its high-profit potential, its high volatility, and its fast speed. The fastest and highest profit potential of any Cryptocurrency is seen in the buy and sell cryptosystem called “bitfinex”. Other Cryptocurrencies like Dash, Zcash, Monero are much slower and have lower trading volumes. Despite the large gaps in terms of volume and profit potential, all cryptosystems are volatile in nature and tend to follow the trend of the market, increasing in value and decreasing in value over short periods of time.
Like any other type of market, Cryptocurrency markets tend to exhibit “trend overlaps” with other markets. This is where two cryptosystems, such as the Dash and cash, tend to follow the same trend as the Dogecoin market. This is because both of them have built their business on the same premise – to empower ordinary people to participate in the economic activity of the country. Both Dash and Zcash are popularly traded over the Internet. There is also a close relationship between Dash and PIVX, another well-known tokenized Cryptocurrency. The two currencies almost seem to swap the role of the major players in the Cryptocurrency market, with each one taking advantage of the other’s network effect.
Most of the Cryptocurrency players are based in China, Japan, South Korea, and Hong Kong. In terms of market capitalization, four major Cryptocurrencies – ETH, BTC, BNB, and Tether. Some of the lesser-known Cryptocurrency such as SRK is worth less than a dollar each. Some of the more volatile and profitable Cryptocurrency is still relatively new on the marketplace and also face high trading costs and are thus not traded on major exchanges.
There are several forms of Cryptocurrencies that are currently being traded on major exchanges. Most of the tradable Cryptocurrencies follow the same principle of supply and demand. There are very few exceptions to this principle. One of the few exceptions is Monero, which is not actually a Cryptocurrency but rather a digital currency that was designed by a group of computer geeks. This type of Cryptocurrency is difficult to obtain and not recognized by most central banks.
Inside The Cryptocurrency Revolution
Inside The Cryptocurrency Revolution
Bitcoin’s emergence as a global digital currency has been as revolutionary as it has been erratic. But while fledgling investors obsess over every fluctuation in the cryptocurrency market, nation-states are more interested in the underlying blockchain technology and its ability to revolutionize how business is done on the internet and beyond. VICE’s Michael Moynihan travels to Russia with Vitalik Buterin, inventor of the ethereum blockchain, to get a front-row seat to the geopolitical tug of war over Internet 3.0.
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How to Assess the Current Cryptocurrency Scene?
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.
Should You Buy Used Mining Rigs?
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.
Coinbase Commerce
Coinbase Commerce – Striking Back at The Banks and Hitting Them Where it Hurts
Coinbase Commerce empowers over 48,000 businesses to accept Bitcoin, Bitcoin Cash, Litecoin and Ethereum alongside Visa, MasterCard, Discover and American Express. This alone silences the critics that often cite Bitcoin and other cryptocoins as being useless since cryptocurrency can’t be spent anywhere.
Thanks to Coinbase Commerce the four major cryptocoins can now be spent EVERYWHERE. From the big boys like Dell, Microsoft, Expedia, Intuit, Bloomberg and Dish Network to much smaller online merchants, accepting cryptocoin for payment can be implemented in just a few minutes. With such a simple and swift implementation process it’s easy to imagine websites accepting Bitcoin for payment numbering into the hundreds of thousands in no time at all.
Coinbase commerce is a dream come true for online merchants. That’s because online merchants face the bane of their existence in the form of credit card chargebacks. That’s when a consumer disputes a credit card charge with the issuing bank of the credit card. Within a couple of days the merchant’s bank account is hit and the funds are removed. The merchant then has to respond to the chargeback and then hope for the best. Hope for the best? Yes indeed. One of my other businesses, crowdfunding promotion firm Crowdfund Buzz, has only been successful in winning a chargeback case just 50% of the time. The other 50% means that the customer ends up getting our services for free. Online merchants selling products have the same pain; they ship the goods (think Apple MacBooks, Gucci handbags) then get slapped with a chargeback. To add more pain to the process, researching and submitting the documentation needed to answer a chargeback is time consuming AND the merchant typically waits TWO MONTHS for the decision. Even with breathtaking documentation (I typically provide a 45 page response LOADED with proof of work, proof of client acceptance, etc. as other vendors provide FedEx or UPS proof of delivery, etc.), too many chargeback challenges fail. In that case the customer gets to keep the goods or services – and the money. It’s become so common that it has garnered a term all its own; “friendly fraud”. By the year 2020 friendly fraud will cost merchants $25 billion per year at the current pace.
With Coinbase commerce that’s a thing of the past. Chargebacks are impossible and businesses can sell the crypto they received as payment instantly and receive fiat currency just as quickly as if they made that sale with a credit card. It’s not hard to imagine online merchants accepting cryptocoin in droves then eliminating credit cards from their websites. This has already started and I predict will continue to gain momentum.
Banks rake in $200 billion per year on credit cards from the merchant fees imposed to interest charges, annual fees and all the rest of them. Coinbase commerce will steer some of that money their way through the transaction fees they’ll earn on every transaction. With wider adoption cryptocoin becomes more mainstream, consumers have a lighter debt load and this must have the banks scared to death.
GPU Availability Trending Downward
GPU Availability Trending Downward – Cryptomining is the Culprit.
Ask anyone looking to build a PC for gaming or cryptomining and they’ll tell you the same story: GPU availability trending downward is reality. As a result of supply and demand GPU prices are through the roof. A recent boom in popularity of cryptocurrencies, like Ethereum or Monero, has led to a record high demand for GPUs driven by crypto mining. Such high popularity of cryptocurrencies has led to GPU prices trending upward. Yet, higher prices aren’t helping shore up supply. Both major retailers of consumer-end graphics cards, Nvidia and AMD, are experiencing a supply shortfall. Their core markets are also suffering from this relatively sudden price increase and poor availability.
GPU Availability Trending Downward is not an accident….
Demand Far Exceeds Supply
Even with prices for consumer cards on a steady rise, many retailers and even GPU manufacturers can’t seem to keep GPUs in stock. But the rise in GPUs scooped up for cryptocoin mining isn’t the sole culprit in this matter. ASIC manufacturers, such as Bitmain, are buying out major foundries so they can keep pace with demand for ASIC miners. This puts foundries like TSMC at a production deficit when it comes to supplying GPU manufacturers like Nvidia and AMD.
While your average end-user won’t notice a huge difference, this shortage is impacting small-time altcoin miners and gamers alike. Prices are being driven ever higher by major mining corporations buying their GPUs en masse from major distributors in China. GPUs are being bought in such bulk that consumers aren’t able to get their hands on a high-end graphics card without paying a hefty price, if they are able to obtain one at all. With markets devoid of stock, and demand doubling or even tripling supply, even having the money doesn’t guarantee you’ll be able to buy the graphics card you want. That’s where GPU availability trending downward hits hardest.
Gamers First
With massive supply shortfalls, GPU manufacturer Nvidia is trying to limit who buys their GPUs. According to Nvidia spokesman Boris Böhles: “For NVIDIA, gamers come first. All activities related to our Geforce product line are targeted at our main audience. To ensure that Geforce gamers continue to have good Geforce graphics card availability in the current situation, we recommend that our trading partners make the appropriate arrangements to meet gamers’ needs as usual.”
AMD has similar issues. Trying to get the latest Radeon graphics card will likely cost you a small fortune, if you’re able to buy one at all. AMD’s Radeon line tends to be more popular with miners due to their reputation of having better mining efficiency than Nvidia’s GeForce line. This leads to getting all but the most entry-level Radeon cards nearly impossible.
With supply issues and the wide unavailability of AMD’s Radeon RX 500 series, AMD is also putting gamers first. According to an AMD spokesperson in an email to CNBC, “The gaming market remains our priority. We are seeing solid demand for our Polaris-based offerings in the gaming and newly resurgent cryptocurrency mining markets based on the strong performance we are delivering.”
The Future for GPUs
While the short-term is definitely horrible for end-users, answers may be just over the horizon. With both major GPU manufacturers acknowledging the problem, perhaps we’re on the cusp of a revolution in GPU technology. We may be seeing the major GPU players developing graphics cards geared specifically at miners while still innovating and improving graphics cards for the hardcore gamers. Only time will tell. One thing is for certain: current GPU market trends are unsustainable for both the miners and the gamers of the world.
Sources:
https://news.bitcoin.com/nvidia-tries-to-limit-gpu-sales-to-cryptocurrency-miners/
https://pcpartpicker.com/trends/price/video-card/
https://www.theverge.com/2018/1/30/16949550/bitcoin-graphics-cards-pc-prices-surge