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Cryptocurrency Mining: Explained

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Ever given a thought to how cryptocurrencies actually come to exist? How does one actually get them onto a server? How does one actually introduce them into the network for community users to buy, sell and trade? The heavy energy and resource consuming process which is required to obtain these cryptocurrencies is called mining, which is why we say that one has to ‘mine’ their cryptocurrencies.

When it comes to cryptocurrencies, there is no central body to issue new notes or mint new coins. A cryptocurrency exchange has no such system of single point of authority.

 

Blockchain and Cryptocurrency mining

The technology of Blockchain supports virtually every cryptocurrency on the digital world. It is a decentralized shared ledger of each and every transaction that ever takes place on the network. The genesis block is the first block to record the first transaction made over the network. As and when newer transactions take place, they get permanently logged onto newer ‘blocks’ which are then chronologically added in a linear fashion onto the pre existing chain of blocks thus forming an ever growing chain of blocks called the blockchain.

In order to create a new block with all its legitimacy intact, a cryptographic hash is included. To arrive at a hash matching the right criteria, all one needs to do is calculate as many hashes as possible and then wait until one hits a match. Upon hitting the right hash, new blocks are formed and the reward of this computational process is given in the form of the cryptocurrency involved to the miner who founded this block.

In even simpler terms, mining is just the process to produce or create cryptocurrencies. The computer processing power enables mining, which is basically a record keeping service. A network of nodes on a distributed network race to solve a heavy mathematical puzzle using the trial and error method. The first computer to successfully solve the puzzle is known to “mine” the cryptocurrency. Higher is the computing power contributed from your side, larger is your reward.

 

Obtaining mining hardware and power supply

One first needs to decide on what hardware equipment they wish to use to mine their cryptocurrency. All these mining equipments are very expensive and one needs to make a sound intelligent decision before making a purchase. Always opt for a machine with higher hash power and efficiency. Usually, a machine with higher hash power is more costly. To keep a track of your expenditure and evaluate your returns, one could make use of the Bitcoin Mining Profit Calculator. AvalonMiner 741, AntMiner S9, AntMiner S7 are a few of the most popular, cost effective and reliable miners available on the market which can be easily bought from online shopping sites such as Amazon. In addition to this, one also needs to find a power supply compatible with their choice of miner.

 

Mining software and Mining Pool

A cryptocurrency miner would not mint out hard coins for you. You need to integrate it with a mining software to help you mine your digital currency. EasyMiner has a very user friendly graphical user interface (GUI) and can be used by almost everyone with little to no technical knowledge. It is very user intuitive. If one wishes to use a terminal based mining software, CGMiner and BFGMiner are two very good options.

Since mining requires a lot of energy, it is a costly process. It is always recommended to mine cryptocurrencies on a large scale. Not just this, undergoing the mining process individually, one needs to spend a lot of hours simply waiting for the block of transactions to pull through and then getting their virtual currency as a reward. To overcome this excess expenditure of time, services like mining pools are available. In a mining pool, all the participating members pool together their computing power to save time. Every time a transaction pulls through on the network, all participating members of the pool receive a reward. Of course, the fraction of reward received depends upon how much computing power one contributed in the shared network.

 

Obtain a Bitcoin wallet and start mining

Before one actually starts mining, one requires a place to hold their coins. Several web based wallets and mobile applications based wallets are available to choose from to secure your digital currency. Airbitz, Blockchain, Freewallet, Jaxx, My Celium Wallet, Coinbase, Circle, Blockchain, Strongcoin, Xapo are a few of the most widely used wallets. Miners can explore all these options and choose one that best fits their requirements. Once you have everything in place, follow simple instructions inside the users manual of your miner and start mining!

#Exchange

Mt Gox: Has the time come when Mt.Gox Creditors will be paid?

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As reported by the Mt Gox trustee, They still have 141,000 BTC and 142,000 BCH and the trustee seems to be taking charge to return the funds to the victims.

The small cryptocurrency community back then was in shock when the biggest bitcoin exchange Mt Gox (at that time) was hacked and around 850,000 BTC were stolen which were worth around $450 million back then and around $3.4 billion according to today’s price. Years have passed since the incident, however, only a few the victims have received their share and most of them are still waiting for their lost funds.

 

Mt Gox to credit victims?

As reported by Nobuaki Kobayashi, the Mt Gox trustee, Mt Gox still has more than 141,000 Bitcoin and 142,000 Bitcoin Cash and the trustee seems to be taking charge to return the following funds to the victims. The victims were super excited to hear this and Twitter seems to be full of tweets claiming that the exchange has finally made its decision of returning the lost funds to the victims.


However, it is worth noting that Mt Gox might have more than $631 million worth of Bitcoin and Bitcoin Cash, the number of funds to be compensated are likely much more than this amount. The other documents on the website claim that the victims shall be sent a notification regarding the approval or disapproval of their claims based upon their type of filing (online or email).

 

Nobuaki Kobayashi said that after a few days, the Rehabilitation Trustee of Mt Gox will be announcing the results of the claims filed by the victims. The result will showcase whether or not their claims have been accepted.

 

Missed the deadline?

If you are one of the victims and you’ve somehow missed submitting your claim, you can still download the claim form from the Mt Gox website. However, if these claims made after the deadline shall be accepted for refunds will be decided by the court.

 

Is there any timeline for the claims?

According to Nobuaki Kobayashi. he will contact the victims soon. So there is no specific timeline as to when the funds will return to the victims. However, it is still great news for the people who have been waiting for over 5 years and they are surely happy about the fact that they will soon be compensated.

 

Cryptocurrency investors are now wondering how will this affect the bitcoin price? What do you think? Tell us in the comments section below.

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#Bitcoin

Cryptocurrency Price Analysis: Great Week for the top 10

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The current week has proved to be quite amazing for the cryptocurrency market as all major coins are holding green. The total cryptocurrency market rose by around $1.5 billion yesterday night with the price of bitcoin reaching $4100.

 

Bitcoin:

BTCUSD Price Chart

BTC/USD Weekly Price Chart

Bitcoin broke the $4000 resistance level on 17th March and has been over this range since then. Bitcoin has turned the previous resistance into strong support now and has moved upwards slowly currently trading around $4120 (according to Bitfinex chart) with around 1% increase in the last 24 hours. If bitcoin is able to maintain its position above $4100 range for long, it might soon move ahead towards the major long term resistances such as $4500 and $4600.

 

Altcoins:

ETHUSD Weekly Chart

ETH/USD Weekly Chart

Ethereum also saw a nice bullish momentum this week after reaching the highest point of $143. Currently, Ethereum is trading nicely around $140 and is experiencing a few dips while trying to move upwards.

Unlike other top 10 coins, Ripple market is experiencing volatility from the last week but the momentum is still quite bullish.

LTCUSD Weekly Chart

LTCUSD Weekly Chart

Litecoin has been following trends and is steadily trading around $60 from the start of the week. Litecoin has increased more than 1.67% in the last 24 hours which makes it the best performing crypto of the day (in comparison with the top 10 cryptos according to market capitalization). LTC is currently trading around $61 (according to Bitfinex chart).

 

The overall cryptocurrency market is in a bullish momentum with sings of further gains. After a long bearish trend, cryptocurrency analysts are now believing that the bull market might be coming soon.

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#Bitcoin Price Analysis

Bitcoin Price to $4500 soon? BTC Price Analysis

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Bitcoin price moved above $4000 yesterday and currently trading around $4100. The buyers are trying again to break through the strong resistance at $4200.

Technical Indicators:

Support Level: $3900

Resistance Levels: $4100, $4200

 

Bitcoin Price Analysis:

On the hourly chart, bitcoin price has been quite bullish since last week when it reached a high point of $4160. However, bitcoin was not able to break through the resistance around this range. Again bitcoin started a bullish momentum on 18th March and reached up to $4120 before but started to correct downwards later. It went below $4000 support level.

Bitcoin price moved above $4000 yesterday and currently trading around $4100. The buyers are trying again to break through the strong resistance that is formed between $4100 and $4200. If the current resistance is broken, there are chances that bitcoin could spike up to $4500 in the short term. The current momentum surely signals a ‘buy’ time. However, if bitcoin is not able to break through this resistance for long, it could result in BTC price falling back below $4000 and even $3900 range and turn bearish.

BTCUSD Hourly Chart

BTCUSD Hourly Chart

Last week, bitcoin tested the $4200 resistance but failed to break through. The sellers pushed the price down to $3832. Later, buyers were able to start a fresh bullish momentum and moved the price above the 12-day exponential moving average which was turned into support. Bitcoin moved above $4000 and the buyers are currently moving ahead to fight the sellers at $4200 resistance level.

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