BT Daily News: Does Bitcoin Mining Bring Any Profits? and more
1. Does Bitcoin Mining Bring Any Profits?
Bitcoin mining is carried out using specialized processing equipment, and miners are paid in Bitcoin in exchange for validating transactions on the blockchain by resolving a challenging problem known as a "hash." These transactions provide security, and the miners are paid in Bitcoins as compensation. Every facet of Bitcoin mining has been impacted by technological innovation. The building of expert mining centers with top-notch computing power is the outcome of changes that occurred in mining technology and equipment. According to research mining Bitcoins is a very specialized industry and with 0.1% of all miners owning 50% of the network's mining capacity, around 10% of Bitcoin miners account for 90% of the network's mining capacity.There are a number of variables that could determine whether mining Bitcoins is profitable or not. And a few of these variables are the price of electricity, the accessibility of machines, the cost of machines, and the ease of mining. The incentives and environment for mining have both been greatly impacted by the shifting Bitcoin price.
However, the profitability of mining Bitcoins varies for different people. For some, it is profitable, while for others, it is not. This is greatly influenced by equipment availability, which has improved in the modern world. Some machines have adopted more stringent steps to stay competitive, such as allowing consumers to change the settings on their hardware so that it consumes less energy, which will significantly lower the overall cost. Prior to making the fixed-cost purchase of the equipment, every potential miner must conduct a cost-benefit analysis to understand the current market price of Bitcoin.
Before making a purchase, you need to think about a number of factors, such as the current market value of coins, efficiency, time, and the cost of electricity. Numerous profitability calculators are available to assist you as a miner in analyzing the cost-benefit analysis of Bitcoin mining. There are various sorts of profitability calculators accessible; some are slightly more challenging to use than others, and you can select one based on your requirements.
2. Bill Ackman and Robert Kiyosaki remain positive about the future of crypto
One of the most challenging things to do as an investor is to take a contrarian approach to the consensus in the market and “buy when there is blood on the streets,” as the 19th-century British financier Nathan Rothschild is credited with saying.Amid the collapsing prices in crypto markets as the FTX contagion spreads, two of the best-known investors of our time – Bill Ackman and Robert Kiyosaki – are both taking a page out of Rothschild's book and using this opportunity to scoop up their favorite tokens at fire-sale prices.
Ackman has been a well-known skeptic of the crypto industry for years due to its tendency to “facilitate fraud.” But the events of 2022 along with a deeper dive into “some of the more interesting crypto projects” has shifted the perspective of the Pershing Square Capital Management founder and chief executive, who now believes “that crypto can enable the formation of useful businesses and technologies that heretofore could not be created."
Ackman pointed to the ability of a company to issue a token that incentivizes participants to engage as a “powerful lever in accessing a global workforce to advance a project.”
3. Institutional investors are buying through crypto winter: Survey
A survey of institutional investors suggests that their cryptocurrency allocations have increased over the last year despite the industry going through a prolonged crypto winter. A Coinbase-sponsored survey released on Nov. 22 conducted between Sep. 21 and Oct. 27, found 62% of institutional investors invested in crypto had increased their allocations over the past 12 months.In comparison, only 12% had decreased their crypto exposure, indicating most institutional investors may be bullish on digital assets in the long term despite prices falling, according to the survey. More than half of the investors surveyed said they were currently, or planning, to use a buy-and-hold approach for cryptocurrencies, with the belief that crypto prices will stay flat and range bound over the next 12 months.
Additionally, 58% of respondents said they expected to increase their portfolio's allocation to crypto over the next three years, with nearly half "strongly agreeing" that crypto valuations will increase over the long term.
As has been widely reported before, regulatory uncertainty was once again the factor most investors were concerned about when weighing up whether to invest in crypto, particularly among those planning to invest in the next 12 months where 64% noted concerns.
4. Crypto Paradise? El Salvador Preps New Law to Pave Way for All Crypto
El Salvador is doubling down on its bet on cryptocurrencies even in the midst of a bear market. The first country to declare Bitcoin as legal tender is now working on a Digital Asset Issuance Law, which would facilitate operations with any crypto asset.According to a document available on the official website of the National Assembly of El Salvador, the law would regulate the transfer operations of any digital asset, seeking to "promote the efficient development of the digital asset market and protect the interests of acquirers."
The novelty of the law is that it separates crypto assets from all other assets and financial products, thus creating a tailor-made regulatory framework for them. The law leaves no room for doubt: for a digital asset to fall under this categorization, it must use a distributed ledger or a similar technology. The blockchain is perhaps the most popular distributed ledger technology to date.
The law's framework excludes transactions with CBDCs (as they are fiat currency regulated according to each country's financial guidelines), assets not eligible for trading or exchange, assets with restricted transactions such as securities, and sovereign assets regulated by foreign laws.
5. Argentina’s fan token sinks 31% after World Cup loss against Saudi Arabia
Argentina’s shock 2-1 loss to Saudi Arabia in the opening match of the FIFA World Cup has plummeted the price of the Argentine Football Association Fan Token (ARG), in line with the hopes of the nation’s die-hard soccer fans.With the ARG token priced at $7.21 at kick-off, the poor performance by the Lionel Messi-led soccer team saw the token’s price fall 31% to $4.96 by the end of the match before rising to $5.22 at the time of writing, according to data from Coingecko.
By contrast, the floor price of "The Saudis," a Saudi Arabian-themed nonfungible token (NFT) collection unrelated to the soccer team, skyrocketed 52.6% from 0.196 Ether (ETH) to 0.3 ETH over the same time before cooling off to a price of 0.225 ETH, around $250.
The collection's sales volume also spiked 990% over the last 24 hours, closing in on 24.5 ETH as per OpenSea data.
Despite the built-up hype for the FIFA World Cup, which officially kicked off on Nov. 20, cryptocurrency research firm Delphi Digital noted that the fan engagement platform Socios' native token Chiliz (CHZ), in addition to other soccer-based tokens representing participating nations, has also cooled off considerably over the last few days.