Inmining: evolution of the mining industry

Inmining: evolution of the mining industry

                                 

 

More and more investors are getting involved in the mining industry

and this requires a new look at the economics of mining enterprise. Due to the unique conditions of placement in special economic zone “Alabuga” inmining data center works in the mining market more efficient, affordable and safer. 

Although the mining industry is nine years old, this industry is in the stage of active development and formation. The era of “home mining” has long passed, when with the help of a couple video cards, users were able to extract significant amounts of cryptocurrency. The next stage of development was cloud mining platforms and mining hotels, which gained particular popularity induring 2018. But they also go into the past, showing investors their unreliability and insufficient range of services provided. The mining industry has moved to a new stage – full cycle tokenized mining enterprises, when the investor can fully delegate the purchase, installation and maintenance of equipment, without losing an ability to quickly enter and exit the market and control all processes. An example of such an approach to an organization of mining production is the Inmining project.

Imining is a cryptocurrency mining platform with its own largest data center. The main production site of Inmining is a data center under construction in the SEZ “Alabuga” with a capacity of 10 MW, which will be the largest in Russia. The data center will be equipped with modular containers with computing machines BlockBox AC from the leader of the mining industry Bitfury. Each mobile unit BlockBox AC consists of 176 servers, air-cooled, and the total Hasrat will be 14 peachesa per second. This is one of the most powerful and least expensive solutions available on the global bitcoin mining market. The use of containers allows quick installation and start-up minimizing construction and maintenance costs. 

The most successful special economic zone in Russia  was chosen to host the data center – SEZ “Alabuga”. It has its own railway terminal, which will allow delivery of mining equipment in a short time and is located in a protected fenced area. But the main advantage of SEZ “Alabuga” is the unique conditions for high-tech projects. The territory of SEZ “Alabuga” has 350 MW of supplied capacity 30% of which  are currently free. This will allow the Inmining project to scale production quickly and easily to compensate for the increase in complexity and maintain a sufficient level of profitability. The cost of electricity for Inmining will be 2.5 cents per kWh. For comparison: the price of kilowatt per hour in China, which is considered one of the centers of the world bitcoin mining, in March 2019 was about 8 cents, and the world average cost of electricity ranges around 15 cents per kWh. As a resident of the SEZ “Alabuga”, the company “Blockchain technology”, which manages the data center Inmining, will be exempt from land, property and transport taxes for 10 years, and thanks to the regime of free customs zone in the SEZ “Alabuga” will significantly reduce the cost of importing foreign equipment. 

Inmining operates on the tokenomics business model with elements of gamification. The previous generation of mining projects offered investings in physical assets: for example, remotely purchase equipment and place it in a mining hotel or rent computing power in data centers (the so-called “cloud mining”). In both cases, the investor enters into a fixed price contract for a particular service. Unlike cloud mining and mining hotels Inmining tokenizes its assets and sells utility-tokens INMG. INMG are backed by high-tech equipment from Bitfury and digital asset is here a cryptocurrency, produced in the data center. Given the computing power, electricity costs and the growing complexity of the bitcoin network, each module of the inmining data center will be able to produce about 46 bitcoins in a year after it starts, which is scheduled for early 2020.  

Inmining will monthly buy a small share of INMG on cryptocurrency exchanges, and burn them. This tactic will support the value of the token in the long term, will contribute to the growth of liquidity and trading volume and encourage IMMG holders to long-term storage of tokens, which will also help to maintain the stability of the coin rate.

In addition to the income from the exchange rate of tokens themselves, INMG owners have the right to regularly participate in the lottery, in which 35% of the profits from the extracted bitcoins are played. A distinctive feature of the lottery is its win-win for the participants. To participate in the lottery users freeze their INMG tokens in your wallet Inmining and wait for the end of the game round. The higher the bet, the higher the chance of getting a bigger win. Such a mechanism of gamification in Inmining business model allows interested investors to purchase greater amount of INMG tokens. The lottery is held in a distributed network using blockchain technology and eliminates the risks of fraud and fraud results. 

Tokenization of a mining enterprise is a way to diversify your assets, invest in a growing mining industry with minimal effort and the ability to quickly enter and exit this market. The whole process – from the purchase of equipment, installation, service maintenance-is delegated to the resident company “Blockchain Technology”. 

The primary selling tokens INMG will take place on the world crypto currency exchange Coineal in several rounds. The first public round will be held on September 19-20 2019, the second – October 8-9 2019. During IEO on Coineal there will be INMG tokens for sale. The starting price will be $0.1 and will grow as the tokens are sold. Until September 18, 2019, investors have the opportunity to participate in a private round and purchase INMG tokens at a discount of up to 20%. In total, the private and public rounds of licensee will be distributed 75% or 112,5 million tokens issued by INMG. Issue volume is fixed (150 000 000 INMG). After the initial exchange of offers tokens INMG will be included in the listing Coineal and in the future will also appear on other cryptocurrency exchanges, which will ensure the free circulation of INMG on the secondary market and will become participants of the project and after the completion of the IEO. 85% of funds raised during licensee, will be used for the purchase of equipment and capital costs. 

To enter the mining business seems simple only at first. In practice, those who wish to start making on computing emerging market have to deal with a wide list of components and mining machines, to study cooling characteristics,  choose the jurisdiction of most optimal in terms of electricity prices and regulation for mining, engage in customs, tax, transport issues. Inmining is an efficient and secure way into the mining industry, bringing a necessary liquidity and thane ability to quickly enter and exit assets.

Article Produced By
Dean

Owner, Editor, and lead writer for Cryptorials.Cryptocurrency writer and trader since 2014.

https://cryptorials.io/inmining-evolution-of-the-mining-industry/

 

Binance Is Still the Top Exchange and Trans-Fee Mining Exchanges Are Gaining Market Share

Binance Is Still the Top Exchange and Trans-Fee Mining Exchanges Are Gaining Market Share

  
 

 Binance, a pure crypto-to-crypto exchange,
has been found to still be on top of the cryptocurrency exchange market, at a time in which exchanges using the controversial trans-fee mining model have been gaining a bigger piece of the pie. According to CryptoCompare’s December 2018 Exchange Review, Binance has managed to maintain its status as the number one crypto exchange in the ecosystem last month. The document shows that, on average, $664 million worth of cryptocurrencies changed hands on the exchange per day, for a total of $20.5 billion traded in December.

Binance was seemingly also the most visited exchange, after receiving 2.2 million visitors. Its users are currently able to trade 166 cryptos on the platform, on a total of 427 trading pairs. Behind Binance came OKEx, which traded $19.2 billion in December. While Binance, by itself, represented little over 10% of the cryptocurrency exchange market, CryptoCompare also found that exchanges using the controversial trans-fee mining model, which has been described as a “disguised ICO” revenue model, as it reimburses users’ trading fees with tokens.

Trans-Fee Mining Exchanges Gain Market Share

According to the report CoinBene, the number one cryptocurrency exchange using the controversial revenue model, traded $10.4 billion in December, followed by ZBG and EXX, which traded $5.13 billion, and $4.58 billion respectively. In total, trans-fee mining exchanges traded $23.2 billion, equivalent to 12% of the global spot trading volume, up from 7% in October. It has in the past been found that these exchanges have unusually thin order books, and a relatively low amount of traffic, taking into account the total trading volume they have. Thin order books mean these exchanges can see large price swings if their order books face large orders.

Order Book Depth Drops on Top Exchanges

Per CryptoCompare’s report, top cryptocurrency exchanges would have to, on average, face a $2.56 million sell order to see bitcoin’s price crash 10%, a figure that has dropped since November, and is lower on trans-fee mining exchanges.

The report reads:

Bitfinex, Kraken and Bitstamp maintained the most stable markets in December, while exchanges CoinBene, Bitforex, IDAX showed thin markets combined with high volumes.

It adds that on Bitfinex, where an average of $68.5 million were traded in December among its top 5 trading pairs, it would take a $9.5 million order to crash the price 10%, while on CoinBene it would take only a $13,600 order. An analysis of the crypto exchanges’ web traffic showed that these exchanges attracted “significantly lower daily visitors than similarly-sized exchanges.” CoinBene, for example, received 48,000 visitors per day, and traded $10.4 billion in December, while exchanges like Bitfinex and HitBTC with “similar high volumes” attracted over 360,000 visitors.

Article Produced By
Francisco Memoria

News Reporter

Francisco is a cryptocurrency writer who's in love with technology and focuses on helping people see the value digital currencies have. His work has been published in numerous reputable industry publications. Francisco holds various cryptocurrencies

https://www.cryptoglobe.com/latest/2019/01/binance-is-still-the-dominant-exchange-and-trans-fee-mining-exchanges-are-gaining-market-share/

Bitcoin Price Could Go from Bad to Worse’: Bearish Analyst

Bitcoin Price ‘Could Go from Bad to Worse’: Bearish Analyst

   

The most potential use case of bitcoin today is the store of value.

But an analyst thinks otherwise. Stephen Innes, head of Asia Pacific trading at Oanda, a New York-based forex firm, believes that the world’s leading digital currency is due for another drop because it hasn’t provided the world a “significant use-case” yet. The Bitcoin hype, according to Innes, is far ridiculous than the one seen during the Tulip mania bubble.

Since its all-time high at $19,500, bitcoin has plunged more than 80% this year. Since mid-November itself, the digital currency has noted a 48.5% fall owing to specific macroeconomic crypto factors. Just recently, it established a new yearly low near $3,200, which is 83.5% lower than its good days’ peak. “It’s has been a disastrous year for cryptos,” Innes explained, “and by all indication, the current bear market could go from bad to worse with no fundamental or underlying reasons to buy BTC even more so when the only support offered up is a squiggly line on an analyst chart.”

A History Lesson

Either bitcoin cannot be anything. Or, it can be everything.

The digital currency upon its introduction in 2008 posed itself as an alternative payment system that raised its stakes against the popular payment mechanisms. True, bitcoin was much faster, cheaper and totally decentralized than any of its traditional counterparts. But its evolution brought several use cases on the sideways. Sooner, bitcoin was more than a payment mechanism. To some, it was a tradable asset; and to some, it was a currency of underground online marketplaces. The characteristics of bitcoin changed with every user. But, in a larger context, the digital currency remained a multifaceted technology.

Innes is right in pointing out that bitcoin hasn’t offered the world a significant use-case yet, because all succumbed to only one thing: price volatility. Had bitcoin been lesser volatile than it usually is, the digital currency could gain more trust as a payment medium, more so as a store of value. But aren’t we judging it too early, especially when we can always look back at the chapters of other assets that achieved stability only after a considerably long time? Let’s talk about Gold.

In 1971, when the President Nixon government ousted Gold from being the global value standard and replaced it with the US Dollar, the mighty fiat reserve with an infinite supply, the commodity experienced a period of huge volatility. In 1974, the gold bullion rose 73% against the US Dollar but lost 25% of its gains in the very next year. Another instance is rooted in the year 1981 when gold lost 33% of its value after witnessing a 121% pump prior to the fall.

How is bitcoin any different, you decide. The naysayers do not want to define it as a store of value, expecting that it should remain steady to be one. But they shouldn’t forget that older definitions cannot describe the characteristics of newer assets. Bitcoin, for all its technological issues, is still more likely to attain the status of a store of value, given its volatility goes down as people hold it more often than lose it on the first selling sentiment. And, at the same time, its appreciation should slow down after a rapid pump.

That’s how Gold behaved. And that is how bitcoin is acting in its current state. Then again, does Gold have a use case? Only 10% of it was used for industrial purposes. Get more info on this amazing Quora thread.

Article Produced By
CCN
Bitcoin Price News

https://www.ccn.com/bitcoin-price-could-go-from-bad-to-worse-bearish-analyst/

 

Bitcoin Mining Industry Under Considerable Stress’ 13 Million Devices Switched Off

Bitcoin Mining Industry ‘Under Considerable Stress,’ 1.3 Million Devices Switched Off

   

For much of the year, the bitcoin mining industry appeared to be impervious

to the crypto market downturn, as the flagship cryptocurrency’s hash rate continued to climb even as the BTC price halved — and then halved again. In recent weeks, however, cracks have begun to form in this sector as well.

Bitcoin Hash Rate Drops as Miners Turn off Older Devices

Earlier this month, Bitcoin network difficulty, which adjusts dynamically every 2,016 blocks (a roughly two-week interval) in response to hash rate fluctuations, fell by 15.1 percent — its second-largest drop in history and the greatest since Oct. 2011. Just one period earlier, BTC difficulty declined by 7.4 percent, which was the most significant drop in nearly six years. While this does not, as some bears have suggested, mean that bitcoin has begun a death march, it does demonstrate the extent to which the downturn has begun to put the squeeze on miners with higher costs and thinner profit margins, many of whom had anticipated a crypto market that would look very different heading into 2019.

According to BitMEX Research, the Bitcoin hash rate has declined by more than 31 percent since the beginning of November, which is the equivalent of 1.3 million Antminer S9 miners being switched off completely. CCN previously reported that while miner overhead varies wildly based on the size of the operation, energy costs, and other factors, the market decline had hastened the obsolescence of older miner models such as the Antminer S7, which for most users are now little more than expensive paperweights.

Miner Revenue Falling Faster Than Bitcoin Price

Notably, the recent market sell-off has hurt miners even more than ordinary investors. BitMEX Research estimates that cumulative bitcoin mining revenue has declined to $6 million per day at the start of December from $13 million at the start of November, outpacing the bitcoin price’s already-steep decline.” The reason for this is that because network difficulty adjusts at set intervals rather than in real time, a hash rate drop will reduce the number of found blocks until the beginning of the next difficulty adjustment.

As the report explained:

“In the six-day period ending 3rd December, 21.8% fewer blocks than the expected 144 per day were found, as miners left the network before the difficulty adjusted, and as a result, fewer blocks were found. Therefore in the short term, there was a 21.8% fall in mining incentives on top of the impact of the declining price.”

At this point, BitMEX Research estimates that almost all cryptocurrency miners — regardless of scale and overhead — are operating at a loss, though some may have hedged profits or at least trimmed losses by shorting the bitcoin price throughout the year.

Not a ‘Death Spiral’

According to some analysts, this likely means that Bitcoin has entered the outer ring of a “death spiral,” wherein it endures a vicious cycle of miners turning off their machines before the difficulty can adjust lower, preventing the network from processing blocks at regular, 10-minute intervals and further prolonging the interval between difficulty adjustments. Thankfully, as Andreas Antonopoulos recently explained, these ominous predictions fail to account for the fact that most miners are heavily invested in the cryptocurrency industry and thus operate with a long-term perspective that recognizes they may have to temporarily mine at a loss in pursuit of greater profits in the future.

“Part of the reason that’s unlikely to happen is that miners have a much more long-term perspective, meaning that they have existing investments in equipment and they usually purchase electricity on long-term plans, they don’t pay it by the week,” he said. “And therefore, if they have to wait to become profitable another three months and they have the equipment in place, they’re not turning it off.” Consequently, the mining industry’s current struggles shouldn’t have any long-term impact on Bitcoin itself, though that doesn’t make things any easier for the individual cryptocurrency mining firms that must navigate this increasingly rocky landscape.

Article Produced By
Bitcoin Analysis

https://www.ccn.com/bitcoin-mining-industry-under-considerable-stress-1-3-million-devices-switched-off/