Month: February 2021

Bitcoin Market Reacting Negatively to Treasury Secy’s Warnings

There seems to be caution in bitcoin trade lately, as BTC prices went down by 10% from an all time high of $58K, whilst still teetering a bitt below $50K Bitcoin’s phenomenal growth is attributed to support coming from traditional investors, and from major companies that came out with plans of accepting cryptocurrency as transaction payments. However, the eagerness over bitcoin buying was doused by newly-confirmed Treasury Department Secretary Janet Yellen’s recent statements. That she is worried about the potential losses that investors will suffer as results of its extreme volatility as an investment asset.

Treasury Secretary Yellen has made it clear that she does not have a high regard for Bitcoin, calling it an inefficient digital currency and largely used for illegal transactions. While the Treasury Department has been looking into the risks posed by cryptocurrencies to investors not necessarily to ban digital money, but to institute regulations that will curtail their use as payment for financial transactions.

How Wealth Managers are Reacting to the Treasury Secy’s Warnings

While BNY Mellon expressed support for crypto trading, the President of JP Morgan, Daniel Pinto gave CNBC reporters a reluctant view as far as supporting crypto trading is concerned. According to Pinto, the only reason why they are into crypto trading is because clients want them. Suggesting that if it was up to the financial institution, bitcoin is not the best investment product they can recommend to their ultra wealthy clients.

Veteran BTC traders are not as anxious about the recent demonstration of the volatile nature of crypto money, confident that the growth today is not purely out of retail speculative trading. Although bitcoin has reached new heights this year, analysts said that last week’s trading losses have already brought down the year-to-date gain by 57%.

Asset investment strategies are important to the super wealthy because that is how they earn substantial revenue without the need to pay large amounts based on regular income tax rates. The best financial advisers though would only recommend cryptocurrency investment as source of passive income rather than become part of a major financial strategy. After all, the IRS also has special tax treatment for passive income, given its nature as income not derived from active participation in regular business activities.

What pillar wealth management advocates as investment plans and financial strategies to their high net worth clients are based on long and short term financial goals; not only as individuals but for their family members as well.

While some clients are interested in making speculative investments on cryptocurrency trading, they still seek advice from their wealth managers on how much to invest. That way their risk exposure when trading with bitcoin will not result in losses that can negatively impact the financial plans for the year.

Posted by Madelina Feliks in Cryptocurrency

Amidst Increasing Mining Difficulty: Mining-as-a-Service Can Help

Many are now considering mining-as-a-service as a better alternative to investing in costly hardware to pursue plans of joining the bitcoin mining bandwagon.

The bitcoin market has recently been yielding price levels running between between $44K and $46K. A single unit of bitcoin earned as a reward therefore already equates to such price values, which after deducting all related costs could still bring a reasonable return on one’s investment. That is, if projections are based on high hash rates, a condition denoting that a miner can quickly complete a block and present proof-of-work with very little electrical costs involved.

The reality however is that the number of people who are trading bitcoins has increased, in addition to those who have been regularly using bitcoins for their transactions. Growth, especially if phenomenal, has huge impact on the difficulty of mining for BTCs amidst a highly competitive environment. Even if an ASICS mining machine runs the calculations when searching for a block hash, the machine has to perform a massive number of guesses. sometimes replacing numbers thousands of times in order to solve and complete a block of hashes related to a particular block header.

Although there is no limit to the number of guesses made to solve a block hash, the fewer guesses made the more profitable for the miner. That being the case, one’s bitcoin mining machine could run up electricity costs before a miner earns a bitcoin reward, costs that are likely to erode profits projected under normal, less difficult circumstances.

How Can Mining as-a-Service Help Make Mining for Bitcoin More Profitable

The best way to find out whether mining-as-a-service or MaaS is the better alternative, is to try out the platform so you’ll be able to compare if you will be spending less on costs whilst earning rewards at the present difficulty level. In using this type of service, you will have the option to utilize as many bitcoin machines as you want if you’re already a professional bitcoin miner. Startup bitcoin miners though will be limited to one bitcoin machine, until they get to attain that level of mining skills commensurate to a professional miner.

Nonetheless, the main benefit of using MaaS when venturing into the business of bitcoin mining is that you will be using mining machines that run in a thermally controlled environment whilst using low-cost electricity. The provider of a MaaS platform will in turn collect a certain percentage from whatever profits earned by a customer, after the cost of electricity is deducted.

The Elevate Group for one charges a fixed rate of 20% as share of the profit. That is after deducting the costs of electricity used by the bitcoin machine/s included in the Equipment Management Agreement. Additionally, there is a 1% fee collected to cover for the cost and maintenance of the company’s dashboard wallet. To learn more about Elevate Group’s MaaS platform, check out the company’s website, as it furnishes tutorial videos and a page dedicated for FAQs about bitcoin mining.

Posted by Madelina Feliks in Cryptocurrency

Elon Musk’s Dogecoin Endorsement Sets Off Buying Frenzy for the D Coin

After Elon Musk said he would take a break from Twitter, he returned 2 days later with a tweet calling the Dogecoin cryptocurrency ” the people’s crypto.” As investors have been looking into other cryptocurrencies or altcoins that have the makings of the next important crypto money, Musk’s endorsement immediately had set off a buying frenzy for Doge coins.

Musk’s tweet had sent Dogecoin trades surging by more than 50%, boosting the price range of the virtual coin to between $0.054 to $0.064 from a previous $0.0012 After the buying spree occured, Musk tweeted an image of himself depicted as Lion King’s Rafiki, proudly holding the Doge dog mascot up high, whilst adding “ur welcome” as text.

Apparently, the Tesla Chief’s trade recommendations have been making an impact, his recent tweets of support for CD Projekt, Etsy and the controversial games retail giant GameStop created a positive effect. Musk’s support of GameStop had actually boosted a covert 2-year in the making plan hatched by a group of anonymous stock investors converging at Reddit’s r/WallStreetBets forum.

Background Info about Dogecoin

Dogecoin or DOGE is represented by the D symbol , and uses the image of the Shiba Inu dog that originated from the “Doge” meme. It was introduced in December 2013 by founders Billy Markus, an IBM software engineer and Jackson Palmer, an Adobe software engineer. Their goal was to create a digital payment system that will reach a demographic that is far more wide ranging than.bitcoin This explains Elon Musk’s branding of DOGE as the people’s crypto.

In July 2020, a TikTok video that aimed to hike the coin’s worth to $1.sparked an increase of Dogecoin’s price. Reddit users, likewise, gave attention to Dogecoin, as additional support to the Tesla giant’s D coin endorsement. As a result, Dogecoin soared further, bringing the increase in price at an estimated 800%.

Posted by Madelina Feliks in Cryptocurrency