PlanB is revising its stock-to-flow model shortly before Bitcoin Halving 2020
PlanB a popular Twitter user was featured in the May 1 issue of the podcast with Peter McCormak, another crypto-influencer. There he described the path of the oldest cryptocurrency. He further said that Bitcoin may not even be an asset anymore, but something much larger. PlanB is convinced that the Bitcoin price will one day be around $1 million.
“This thing [#bitcoin] is not a toy anymore, and it’s maybe not an asset anymore as well. It is going to be much bigger than that.”
The stock-to-flow model states that there is a connection between the hardness of an asset and its price. The hardness is calculated as follows: the amount conveyed/increase in one year.
Example Bitcoin: 18,359,500 coins are currently being funded. Each year, block reward * block per year = 12.5 * 6 * 24 * 365 = 657,000 BTC are added. So the hardness is ~ 28. The hardness increases linearly with the same delivery rate. With Bitcoin, the hardness also doubled by the Bitcoin Halving at once, because the delivery rate is halved.
PlanB shows in a logarithmic chart of the post how the market capitalization of Bitcoin has correlated with its hardness in the past. In the revised version, he draws the self-defined development stages of the cryptocurrency. In addition, he included gold and silver in the calculation of the regression line and was able to improve their accuracy and their degree of determination (R ^ 2).
Bitcoin Price to pump massively
The possibility of Bitcoin price to pump massively is high, reflecting the halving event that would help the assumption. As we know the fundamentals of the law of Supply and Demand, it is a point that the supply of Bitcoin would be decreased deeply and its influence in the position of Bitcoin is foreseeable. As the supply declines the more eminent the demand it would get so, every thought and perspicacity that tells you to stock or store Bitcoin is good before it is too late.
Every four years after mining of 210,000 blocks, the Bitcoin halving development occurs, wherein the amount of BTC created rewards to the miners will be halved, i.e, cut the current one by 2, which essentially will decrease from 12.5 to 6.25 BTC. Bitcoin halvings that have occurred before perpetually revealed far-reaching mountains, hence the equivalent is assumed of the upcoming one.
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Disclaimer: The authors of this website may have invested in crypto currencies themselves. They are not financial advisors and only express their opinions. Anyone considering investing in crypto currencies should be well informed about these high-risk assets.
Trading with financial products, especially with CFDs involves a high level of risk and is therefore not suitable for security-conscious investors. CFDs are complex instruments and carry a high risk of losing money quickly through leverage. Be aware that most private Investors lose money, if they decide to trade CFDs. Any type of trading and speculation in financial products that can produce an unusually high return is also associated with increased risk to lose money. Note that past gains are no guarantee of positive results in the future.
IQ mining Review There are few cloud mining service worth talking about since most of them tend to fold up within a few months of launching their services. IQ Mining proved to be an exception.
IQ Mining Review Does It Work ? IQ Mining Proof
Personally, I am of the belief that everyone on the blockchain/cryptocurrency train is out here to make some cash. I know that some people claim to do it for the betterment of humanity. The question is are they making money? A simple yes or no answer really. However, you will find out that 99% of the time the answer is YES.
Anyways the point I am trying to prove is that making money is a major driver of the cryptocurrency industry.
Bitcoin and cryptocurrency Mining as a Way to Make Money
Anyone used to cryptocurrency knows that the best way to earn yourself some solid cash is to mine crypto coins or launch your own cryptocurrency. Mining has however been the most popular option.
Going by the basic definition of mining, the process does seem like an easy one. I mean its all about buying some hardware, installing some software, set things up and sit back and watch the coins roll in. Going by this alone, anyone who can set up a sounds system should be able to set up a mining farm.
In reality, mining involves some use of sophisticated software, and also when the troubleshooting starts, you need to have enough technical experience to handle it. There is also the issue of electricity and country regulations. Putting all these together makes mining crypto without truly taking the time to invest in it nearly impossible.
But Why IQ Cloud Mining?
However, as the saying goes, where there is a will, there is a way. If you know how web hosting platforms operate, you must have heard the term cloud hosting. The basic definition of this is that, instead of having your data hosted in one single fixed location, with a cloud hosting account, you will be having access to use a huge connection of system servers, which are interconnected to form a single usable resource.
Now bringing the idea of this to mining, apart from Bitcoin and some other coins, it is no news that a common CPU/GPU is capable of letting you mine some cool coins. Also, the more the hardware power working together, the more the chances of mining the right block and making more money in the process. This connection of multiple mining tools, cutting across several locations is what forms a cloud. So when you hear the term cloud mining, just know that you are renting space on this huge network, connected together.
One mining services we have come to notice over time (2year!) is IQ mining. Since its inception, the mining service has grown exponentially and has garnered itself some excellent reviews. In this IQ mining review, we will be taking you through all that is to be known about this mining service.
IQ mining is a crypto mining investment platform which came into existence in 2016. Since its launch, the platform has grown into something worth talking about.
For those who got scammed online before, one thing you will always look out for in your consequent investment is a name. Going through the IQMining page, and several IQMimimg Reviews across public forums, for now, no key individual name has been given, and it seems whoever is behind IQMining favors the word “TEAM”. The only two names we are able to get from the website are George Virsky, IQMining Engineer and Brad, tech support.
So in this IQMining review, we are sorry, we won’t be mentioning any key person’s names. That being said, IQMining is said to have about 50,000 active users, who have rented about 857.101 Total power (scrypt), MH/s and a total payout of $4.974.424 within a period of two short years. While using the platform you can mine more than 100 popular cryptos.
How IQMining Works
IQMining is basically a pay as you go form of leased hashing power clouding mining platform. While on the platform, you will have access to a wide network of data centers, which you will be able to tap into for mining, depending on your hash power. So the more the network size you are looking to employ for mining purpose, the more the Hashing power you will have to pay for. Also, the higher the hashing power you have paid for, the more profit you should be looking forward to.
IQ Mining Altcoins Pool
While on the platform, you will be provided with access to tools that mine a large range of crypto coins and token. For now, the IQMining platform offers to mine for about 100-150 altcoins, depending on the plan selected.
The most popular altcoins on the platform right now are Zcash, Dash, Ethereum, Litecoin, and Monero. These altcoins are considered to be the most profitable ones to invest in right now, so for avid miners on the network, this is a good list.
Once the altcoins are fully mined, the platform helps with exchanging them into bitcoins, which are then sent to the attached wallet address.
IQ Mining Technical Know-How
IQMining made it known that in order to reduce cost, the profits, income, and investments are being secured making use of smart contracts. Massive data centers are also being used. They also claim to mine using their hardware (no rent) also power consumption and delivery time frames are protected by smart contracts.
As a result of this, you can rest assured that your return on investment will be THREE TIMES more than other cloud mining services.
IQ Mining Operation Process
A. The IQMining service owns its data centers, and mining tools, which it rents out in exchange for hashing powers. B. The power owned by IQMining is now being used to mine a selection of the most profitable altcoins. C. The mined altcoins are then traded for bitcoins which in turn get transferred to users personal wallets.
So once you decide to buy into any of the five listed plans, you have nothing to worry about. IQMining does all the heavy lifting for you.
Once you click on this button, you will be sent to a form page. Here you will input all your personal information.
Once you have filled the form, the next thing to do is visit your email and verify the email sent to you. After that, you can log in to the platform.
Buying your first mining power on the platform is quite straightforward. At the top of the dashboard, you will be presented with a list of plans to select from as well as the amount you will be making per day in USD on every MH/s you buy (hash rate). The option to buy is located on the left side of the dashboard.
Once you click on the “BUY MORE MH/s” button you will be transferred to the payment page.
The iq mining process is finished now you can start earning bitcoins and other cryptocurrencies i hope you like the iq mining review guide please share this post and help your circle
What is Cryptocurrency mining? Mining is the process by which a computer checks other people’s transactions and adds them to a lengthy public list of all transactions known as the blockchain. In return, they are rewarded with cryptocurrency.
Anyone with a computer and internet connection can be a miner. However, it should be pointed out that mining is not always profitable. Depending on several factors, such as the cryptocurrency you are mining, the speed of your computer, and the electricity bill in your area, you will spend more on mining than what is earned on cryptocurrencies mining.
To start mining, cryptocurrency miners must provide GPU chips or application-specific integrated circuits (ASICs) for dedicated hardware, adequate hardware cooling, and a permanent Internet connection. You will need a connection, a legitimate cryptocurrency mining package, and membership in an online cryptocurrency exchange, and online mining pool.
Aspiring cryptocurrency miners should also know that competition has increased significantly as the popularity and value of cryptocurrencies have increased, and organizations and businesses now have fewer resources than most individuals can compete with.
Blockchain rewards change between blockchains and fluctuate over time on the same blockchain. However, the purpose remains the same. In other words, minors are encouraged to participate in computing competitions. All blockchains not only rely on miners to generate new coins but also rely on miners for transaction verification and network security.
Mining and institutional investors
The cryptocurrency mining market is more mature. If prices don’t start rising sharply like in 2017, you can’t expect excess profits from cryptocurrency mining. Today, the equipment market is saturated. Manufacturers have learned to increase sales quickly and flexibly.
Institutional investors are playing an increasingly important role in the development of the industry, and electricity costs are the decisive factor for investment success. Capacity using less than 0.03 kWh will not only be profitable but will continue to operate in almost any market situation. Stable regulations and legal transparency in the mining industry are essential to investors. Only professionals with deep expertise can obtain this condition with high capacity and low electricity bills.
This year, in 2020, China’s mining industry share is expected to decline gradually. In the near future, the main growth areas are Kazakhstan, the United States, and Canada. North America is a region with investment protection regulations and mechanisms and is primarily interested in more cautious investors. At the same time, Kazakhstan may be becoming the most profitable digital mining country in Eurasia. This is an area governed by British law, the government actively supports IT companies, and Kazakhstan has always been a foreign investor.
If only 21 million Bitcoins have been created, why is it impossible to accelerate the issuance of bitcoins due to the enhancement of operating hardware functions?
The performance was constrained by difficulties. It is an algorithm that adjusts the pressure of the proof-of-work problem based on the speed with which blocks are resolved within a certain period of time (every two weeks or all blocks in 2016). Deployed hash functions increase and decrease difficulty, and the average time between blocks stays around 10 minutes. In most of Bitcoin’s history, the average blockade time is about 9.7 minutes. As prices continue to rise, mining energy is injected into the network at high speeds, resulting in faster blocks. However, in most cases, in 2019, the blocking time is about 10 minutes. Indeed, the price of Bitcoin has been stable for most of 2019.
Cryptocurrency mining validation
During the validation process, each miner tries to find a specific number called a “nonce” or “number used only once.” More specifically, minors are looking for random numbers that meet conditions known to the public. The state is that when the random number is pushed through a cryptographic hash function containing five other vital data, it will generate a block hash below the defined “target” number. This process can be a bit confusing, so let’s dig into it.
Establishing the right Nonce
Each block in the blockchain contains a so-called “block-header.” The block header consists of six essential data.
Version: Extract the version of the codebase that was activated when blocked.
Bit: compressed representation of the target number.
Timestamp: data that records the exact time the block was retrieved.
Merkle root: transaction identification number of all chopped blocks through the Merkle tree.
Previous block: Block hash of the last block in the blockchain.
Nonce: Number of variables sought by cryptocurrency miners.
These six data make up the block-header, and when they are hashed together, the resulting data string is called a “block hash.” When extracting a block, the miner must find the block hash below the target.
Note that five of the six data are predetermined. In other words, they cannot be adjusted. The only number that can be changed is a random number.
As mentioned earlier, the purpose of extraction is to find nuncios that only meet one condition. The condition is to combine the current with the other five data in the block header, and the execution of the password hash function will produce a block hash that is less than or equal to the target (which is itself the target) or even six of the data fragment block headers) one.
Since only random numbers can be changed, miners try to mine the block by gradually adjusting the random numbers. There is no fundamental difference in trying to guess randomly generated numbers, but there is an infinite number of assumptions.
Recall that there is an entire network of cryptocurrency miners, all guessing simultaneously. It’s necessarily a race to find the correct Nonce before any other miner.
When a miner finds a nonce that satisfies these conditions, it will broadcast the random number and its block hash corresponding to the rest of the network. Each node verifies if the Nonce has generated a hash below the target. When an agreement is reached across the entire peer-to-peer network, the block will be added to the blockchain.
Hash rate refers to the total processing power generated by extracting cryptocurrencies on the blockchain network. It measures the size and scale of peer-to-peer blockchain networks.
More specifically, the hash rate measures the number of hashes per second. In this case, the hash is the only guess. All assumptions with sufficient random numbers are called hashes because the block header (including the random number itself) must be hashed as a new block hash. If the block hash is greater than the target, the miner adjusts the random number, reassembles the block header, and compares it with the goal. If it is still incorrect, readjust, and guess again.
Of course, the computer used for cryptocurrency mining is potent and can be executed several times per second. In addition, the hash rate of the blockchain network is not just an approximation of minors. Instead, it is the sum of all assumptions made by all miners in the system.
The hash rate of a network can be expressed in several different ways.
1 kh / s is equivalent to 1000 (1000) hashes per second
1 MH / s is equal to 1,000,000 (million) hashes per second.
1 GH / s is equal to 1 billion (billion) hashes per second.
1 TH / s is equal to 1,000,000,000,000 (Mega) hashes per second.
The more miners there are on the blockchain network, the more satisfying the estimated random number per second. The more assumptions per second, the higher the hash rate. But why is this indicator important?
The hash rate metric matters for two reasons:
because it has a reciprocal relationship with the price of the coin;
and because the hash rate is a direct measure of the security of a Proof of Work blockchain.
Let’s discuss the relationship with market prices first.
At very high hash rates, there is a “floor price,” below which the price of the component usually does not fall. This dynamic occurs because miners typically don’t try to sell coins for less than the cost of extraction. In addition to the time factor, expensive mining equipment and miners who pay for it have inherent break-even costs. The high hash rate reflects high production costs, which indicates that miners are reluctant to trade or sell these tokens at a price below the production cost.
However, the digital asset market may fluctuate. If the price of cryptocurrencies in the spot market drops, some mining platforms will be unprofitable. In other words, the market value of the product may be less than the cost of producing a mining machine. As a result, some users may have to close the cryptocurrency mining platform or mine another coin until the price recovers.
In theory, this situation will reduce the network hash rate, thereby reducing the difficulty of the algorithm and reducing conflicts. However, if the hash price is not reduced by the spot price and the behavior often shown on the Bitcoin network, an imbalance will occur. Young miners are at a disadvantage because the competition is always high, and the chances of getting a return are low. Check out the top 10 bitcoin wallet list
Although mysterious to many people, cryptocurrency mining is just a term for validating transactions on the blockchain network. Based on the decentralized network, mining is critical to maintaining the unreliable operation of the PoW blockchain network.
Without a central authority, the PoW blockchain relies on the use of cryptographic hash algorithms to reach agreements. In contrast, the PoS blockchain does not require any mining. Instead, these networks rely on stackers to ensure the continued security and integrity of the network.
Anyone who wants to enter the world of cryptocurrency mining needs to consider many factors. Hash rates, continued market fluctuations, local energy rates, and the price of mining equipment are all factors that make mining operations successful. In addition, optimizing the operation of miners and generating higher profits through block rewards requires a basic understanding of the PoW algorithm.