How much money you can make if you start mining Bitcoin today

Cryptocurrency mining was a great way to earn a passive income at the height of the craze around blockchain-based tokens, but growth has slowed …

Cryptocurrency mining was a great way to earn a passive income at the height of the craze around blockchain-based tokens, but growth has slowed since the prices of cryptocurrency normalised over the last year.

Whereas miners could previously pay off their rigs in a few months, buying cryptocurrency mining hardware is no longer an easy way to earn money.

Earlier this year, we compared the profitability of several cryptocurrency mining rigs, finding that the payback periods for the hardware had increased drastically as the prices of major digital currencies fell.

There are two main types of cryptocurrency mining machines – GPU mining rigs and Application-Specific Integrated Circuit (ASIC) miners.

These different cryptocurrency miners provide varying levels of profitability depending on which tokens they are mining and the fluctuating prices of the tokens themselves.

To determine the potential earnings of a cryptocurrency miner today, MyBroadband compared the profitability of mining various cryptocurrencies to the prices of the required hardware.

Profitability

We compared the pricing for five mining rigs available for purchase from Bitmart, comprising two GPU mining rigs and three ASICs.

The potential earnings for each mining rig was calculated using CryptoCompare’s profitability calculator tool and converting the result to South African rand.

We then used the price of the hardware and its daily earning potential to calculate the amount of time needed to recoup the cost of each mining rig.

Below are the five mining rigs we compared, along with their hash rates when mining the cryptocurrency they are most suited to:

  • Avalon 821 – Bitcoin @ 11TH/s
  • Antminer D3 – Dash @ 19.3GH/s
  • Antminer V9 – Bitcoin @ 4TH/s
  • Thorium 6x RX 570 Mining Rig – Ethereum @ 144MH/s
  • Thorium 6x GTX 1060 Mining Rig – Ethereum @ 120MH/s

Major cryptocurrencies like Bitcoin and Ethereum remain the most popular cryptocurrencies among miners, although it should be noted that users can use a service like NiceHash to dynamically alter what they mine depending on profitability.

Below are the prices, daily earnings, and payback periods calculated for each of these five mining rigs.

Miner Price Daily Earnings Payback Period
Avalon 821 R9,999 R36.11 277 days
Antminer D3 R11,999 R28.80 1 year 52 days
Antminer V9 R9,199 R13.12 1 year 336 days
6x GTX 1060 Mining Rig R44,999 R27.91 4 years 152 days
6x RX 570 Mining Rig R55,499 R33.28 4 years 208 days

Don’t forget electricity

It should be noted that using powerful hardware to perform computationally-expensive tasks such as cryptocurrency mining can take a heavy toll on your electricity bill.

The earning potentials above were calculated without accounting for power costs, which can be significant.

For example, the cryptocurrency miner that MyBroadband used cost us R1,238 to run for a full month, which is equal to around R39 every day.

This means that if you are paying for your own power in South Africa, it is unprofitable to run a GPU mining operation, where the daily power costs currently outstrip daily earnings.

Providing the hardware with sufficient cooling is also a major consideration, as most mining rigs generate a lot of heat and noise.

Looking at the data above, it is apparent that while some users may be able to make a small profit mining digital currency, it is no longer profitable for the majority of users.

Now read: Mining cryptocurrency on a Huawei P20 and Galaxy Note 9 – This is how much we made

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Ethereum [ETH] Co-Founder outlines the developments in Ethereum 2.0

Recently, Vitalik Buterin, the Co-Founder of Ethereum spoke about Ethereum 2.0 and the importance it holds for the Ethereum blockchain and the …

Recently, Vitalik Buterin, the Co-Founder of Ethereum spoke about Ethereum 2.0 and the importance it holds for the Ethereum blockchain and the timeline of its release, during the Ethereum San Francisco event.

Buterin stated that Ethereum 2.0 is a “catch-all term” that includes a combination of different concepts. He went on to say that those concepts were a part of a path that will “seriously and fundamentally” revamp the entire Ethereum blockchain. The Etherum community has been working on the Etherum 2.0 project for a few years now.

The team is focused on concepts like Proof of Stake [PoS] protocol called Casper and sharding, he added. In addition, the next generation Ethereum will have miscellaneous improvements like abstraction, improved protocol economics. Buterin also stated that he recently authored a paper on the concept of protocol economics.

Buterin further stated:

“Ethereum 2.0, is basically the kind of new version of Ethereum that will take all of these different improvements and put them together and essentially create what we believe is the best possible design for a general purpose blockchain.”

Moreover, the Co-Founder stated that their aim is to have a road map to migrate Etherum beyond Ethereum 2.0 over the next few years.

Buterin further stated that the amount of research that that went into the project made him optimistic. Buterin believes that from a research point of view, there is no significant unsolved theoretical problem. It is more in terms of, detailing, security check and validation, he said.

Recalling the time it took from writing the white paper to materializing it to form Ethereum 1.0, he stated that the timeline for Ethereum 2.0 is similar to the same lines.

In his words:

“Right now, we’re actually very significantly ahead of the initial white paper really is. So like I would say right now with Ethereum 2.0 and with where the protocol is, and where the software development is, is probably where Ethereum 1.0 was possibly in maybe the fall of 2014.”

Giving examples of individual projects like the Prysm [Prysmatic labs], Parity [ConsenSys], Lighthouse [Sigma Prime], he stated that these projects have started implementing their version of Casper and sharding client for Ethereum 2.0. He expects the projects to hit testing soon.

Furthermore, he stated that in parallel, the team will be working on the Testnet, formal verification of protocols, auditing protocol, protocol auditing of code and implementation, which will culminate into the Mainnet release.

Speaking about the rationale of having multiple companies working in parallel, he stated that the Ethereum community strongly believes in the idea of multiple implementations.

Buterin compared the Ethereum ecosystem with that of Bitcoin’s. He stated that they did not want to have failures of development and centralization, faced by the Bitcoin ecosystem due to single implementation.

He concluded by stating that it creates a competition between entities to create different implementations of the clients that people will eventually end up using.

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Venezuela Bitcoin Trading Hits New Record As Maduro Confirms Petro Launch

Venezuela posted its largest-ever Bitcoin trading volumes last week, data compiled October 6 confirms, as the country announced several new …
PetroNews

Wilma Woo

Wilma Woo| Oct 08, 2018 | 21:00


Venezuela posted its largest-ever Bitcoin trading volumes last week, data compiled October 6 confirms, as the country announced several new economic shake-ups.


7 Days, $7 Million

Statistics covering P2P trading platform Localbitcoins show that Venezuelans converted a total of 1073 BTC ($7.1 million) in the week ending Saturday — the most since records began in 2013.

The previous record came in September with 898 BTC ($5.95 million) exchanged during week three, with the following week taking third place with 879 BTC ($5.82 million), Bitcoinistreported at the time.

Traders continue to turn to cryptocurrency in Venezuela to circumvent the government’s increasing stranglehold on the economy and rampant hyperinflation which persists despite a currency redenomination in August.

Petro, the country’s highly-controversial government-issued cryptocurrency, is set for a rebranding and release in November, President Nicolas Maduro announced October 2.

Petro Fails To Convince

On Friday meanwhile, vice president Delcy Rodriguez revealed the next step towards reliance on Petro, stating all new passport applications and extensions could only be paid using it from today.

The price of a new passport will be 2 petros (7200 sovereign bolivars, currently $115) — roughly four times the national minimum wage, Bloomberg notes. Extensions will cost 1 petro.

A migration police force, ostensibly aiming to “preserve citizen security and migratory control,” will also appear, as statistics show 5000 citizens flee Venezuela every day.

Petro’s identity problems continue to plague the project at international level and among ordinary citizens critical of the Maduro regime.

In August, sources told tech publication Wired that the cryptocurrency constituted was worse in nature than the hyperinflated Reichsmark in Germany during the Weimar Republic.

Tied to oil reserves, the publication also noted state oil company PDVSA’s debts totaled $45 billion — far in excess of Petro’s alleged $5.9 billion market cap.

“To put it bluntly: it’s a scam on top of another scam,” Wired summarized.

What do you think about Venezuela’s Bitcoin trading record? Let us know in the comments below!


Images courtesy of Shutterstock, LocalBitcoins.

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ICO Regulations Guide: World’s Initial Coin Offering Country By Country

Virtual currencies is that used by internet users via the web. It is characterized by the absence of physical support such as coins, notes payments by …
ICO Regulations Guide: World's Initial Coin Offering Country By Country

An Overview of ICO Regulations by Country

The regulatory environment for ICOs is not uniform from country to country. Understanding ICO regulation on a global level can help investors in their decision-making process. Here is what ICO regulation looks like:

Country Name Status Other Information
Algeria Not permitted Banned use of virtual currencies in 2017 – “The purchase, sale, use, and holding of so-called virtual currency is prohibited. Virtual currencies is that used by internet users via the web. It is characterized by the absence of physical support such as coins, notes payments by cheque or credit card. Any breach of this provision is punishable in accordance with the laws and regulations in force.”
Argentina Permitted Altcoins recognized as money but not legal tender
Australia Permitted
Bangladesh Not Permitted
Belarus Permitted
Belgium Permitted
Bolivia Not permitted
Bosnia and Herzegovina Permitted
Brazil Permitted
Bulgaria Permitted
Cambodia Permitted Discourages use of altcoins
Canada Permitted ICOs are managed by the Canadian Securities Administrators, which has determined that ICOs and altcoins are securities and subject to regulation on a case-by-case basis. There is a “regulatory sandbox” in place to regulate fintech projects that are outside of the normal regulatory scheme.

As for altcoins, they are recognized as intangible assets. Commercial altcoin dealers must be registered and treated as a money service business in the future. Canada’s largest banks are temporarily banning purchase of altcoins.

Chile Permitted
China Banned People’s Bank of China has banned ICOs for all businesses and individuals. ICOs in the country that have completed their funding cycle must refund altcoins raised. The Bank will investigate entities found to violate the ruling. Altcoin trading is also banned, but individuals can hold the altcoins.
Colombia Permitted
Croatia Permitted
Cyprus Permitted
Czech Republic Permitted
Denmark Permitted
Ecuador Not permitted Ecuador developing its own national altcoin
Estonia Permitted The country is considering to start its own ICO for fundraising, but there is a split opinion on how the Eurozone rule on nation states affects the ICO fundraising campaign.
European Union ICOs permitted but subject to future regulations The EU permits ICOs, so long as they comply with Anti-Money Laundering/Know Your Customer policies. In November 2017, the European Securities and Markets Authority adopted a strict position on ICOs, determining that they are a high risk to investors – as a result, firms must adhere to the regulatory requirements.
Finland Permitted
France Permitted but regulated
Germany Permitted Though permitted, the Federal Financial Supervisory Authority issued a warning on the risks of ICO investments, which states, “Due to the lack of legal requirements and transparency rules, the consumer is left on their own when it comes to verifying the identity, reputability and credit standing of the token provider and understanding and assessing the investment offer. It can also not be guaranteed that personal data will be protected in accordance with German standards.”
Gibraltar Permitted but subject to regulation Regulators planning on offering regulations for ICOs by January 2018 to permanently codify legal protections for altcoins
Greece Permitted
Hong Kong Permitted but subject to regulation Certain altcoins should be treated as securities
Hungary Permitted
Iceland
India Permitted but very regulated Use of altcoins is discouraged. Reserve Bank of India banned altcoin use in banking system
Indonesia Permitted Permitted as commodity – but not as money
Iran Permitted but subject to future regulation
Ireland Permitted
Isle of Man Permitted by subject to regulations Seeking to forge regulations in the future to establish and protect ICOs legal status
Israel Permitted Altcoins subject to a 25 percent capital gain tax. Miners and traders must pay corporate income tax and a 17 percent value-added tax (VAT).
Italy Permitted
Jamaica Permitted Publicly announced support of altcoins as growth opportunity
Jordan Permitted but very regulated Banks and financial institutions are not permitted to use altcoins
Kyrgyzstan Permitted Prohibits use of altcoins as currency
Lebanon Permitted
Lithuania
Luxembourg Permitted but regulated Supports Bit License for altcoin business
Malaysia Permitted but subject to regulation Country was scheduled to ban altcoins
Malta Permitted
Mexico Permitted but regulated Nation’s FinTech law recognizes altcoins as virtual assets
Morocco Not permitted Bitcoin introduced as payment conduit. In 2017, the government warned that the use of altcoins violates exchange rules for the Office des Changes and the use of such devices could be used for illicit purposes.
Namibia Permitted Altcoin exchanges are forbidden and altcoins cannot be used as payment – but these stances do not have the force of law
Nepal Not Permitted
Netherlands
Nicaragua Permitted No official position on altcoins
Nigeria Permitted Use of virtual currency banned. Central Bank released a statement to correct perception that it banned altcoins – bank takes the position that it cannot regulate the internet, and therefore it cannot regulate altcoin use.
Norway Permitted
Pakistan Not permitted State Bank of Pakistan banned altcoins to all organizations and institutions – ban not enforced judicially.
Philippines Permitted but subject to regulation Regulators recognize bitcoin as a form of remittance payment – but country also feels that regulations addressing AML/KYC protections may be needed. Companies offering exchange services must register.
Poland Permitted
Portugal
Romania Permitted
Russia Permitted but very regulated Five orders have been issued by the Kremlin requiring altcoin miner registration and taxation, application of securities laws to ICOs, and use of altcoins to create a “single payment space” in Eurasian Economic Union to oppose Eurozone. Position is shifting to altcoins being “probably illegal” but no official policy et.
Saudi Arabia Permitted
Singapore Permitted but very regulated Monetary Authority of Singapore provided a guide on Digital Token Offerings, indicating how altcoins should be treated under current securities laws. The guidance states that any ICOs or altcoins that are “capital market products” under the Securities an Futures Act can be regulated under MAS. The regulation includes altcoins that either infer ownership of a corporation or product, debt, or a share in an investment scheme.
Slovakia Permitted
Slovenia Permitted
South Africa Permitted Altcoin are intangible assets
South Korea Permitted No explicit ban of altcoins, though the government has embraced a “zero-tolerance” attitude for malicious ICOs. Altcoin futures and derivatives trading is banned
Spain
Sweden Permitted No VAT for altcoins, but subject to the Swedish Financial Supervisory Authority – currently under appeal.
Switzerland Permitted but subject to future regulations Attempts to regulate ICOs have failed, but may occur in the future. Swiss Financial Market Supervisory Authority examines ICOs for possible breaches of securities law, which could be the first signs of a new wave of campaigning for regulatory oversight. Regulations may not be able to halt the current momentum to incorporate ICOs into Swiss culture.
Taiwan Permitted Taiwan’s Central Bank warned banks against altcoin use and altcoin ATMS are not permitted. Altcoin purchases permitted by three of the country’s four major convenience stores
Thailand Permitted but very regulated Financial institutions prohibited from investing or trading in altcoins, exchanging coins for fiat currency or other altcoins or commodities, from creating a platform for altcoin trading, from allowing altcoin purchasing via issued credit cards, and from advising about altcoin investing or trading. Government has not banned trading.
Trinidad Permitted
Turkey Permitted
Ukraine Permitted
United Arab Emirates Permitted but subject to future regulations
United Kingdom Permitted but subject to regulations Issued investor warning on unregulated nature of ICOs – even if the ICO acts in good faith, investors can lose their investment. According to the Financial Conduct Authority, “Typically ICO projects are in a very early stage of development and their business models are experimental.”
United States Permitted but heavily regulated States have their own ICO rules, which vary. There is no uniform regulation, but some states require deposits in equal to or in excess of all local transactions. Others require a license for businesses to engage in altcoin activities. On the federal level, ICOs are not banned, but are expected to be registered and licensed with the SEC if the ICO trades or sells securities. Further, SEC determined that some ICOs are securities and subject to its rulings. ICOs must also adhere to AML/KYC practices and failure to do so can lead to legal action.

United States recognized celebrity endorsement of ICOs to be illegal, unless compensation involved id disclosed.

Purchase of altcoins is not permitted by several credit card processors and banks.
Vietnam Permitted Altcoins cannot be used as currency, but no laws prohibiting trading
Zimbabwe Permitted No official position on altcoin, but the government is skeptic. Altcoins currently traded in the country.

The chart above shows that there is no uniform attitude toward ICOs. Further, it indicates that there are international concerns about malicious or fraudulent ICOs, a nationalistic cornering of the altcoin market, and the risks involved in the ICO space. Many nations and financial institutions have released their stance on ICOs and altcoins, which either recognize or don’t recognize the digital currency. On the other hand, there seems to be a positive reception of distributed ledger technology. Which is the technology behind altcoins,

Moreover, many countries’ issues with ICOs is that they work around establish regulatory schemes. Rather than initiating an initial public offering, businesses can preform seed funding, without proper due diligence, regulatory requirements time, or fiduciary permissions a traditional IPO requires. Further, small business often deal with untested or unknown technologies, a peer-based alternative may provide funding opportunities for businesses that cannot conduct a traditional funding scheme.

The trouble is, the above approach can include fraudulent practices. China is not a proponent, and it worries that scammers can use ICOs to defraud investors. As a result, it has banned the creation or sale of them. As for the SEC, it issued an alert indicating that public companies engaging in “pump-and-dump” practices tend to manipulate market prices.

As for countries that have a “zero-tolerance” position concerning fraudulent or malicious ICOs, have some mechanisms in place that show support for altcoins. For instance, Australia introduced regulations allowing the questioning and prosecution of malicious ICO operators. South Korea relaxed its bank on ICOs and is committed to punishing bad actors in the ICO sphere.

Countries are pursuing changes to regulatory policies to reflect an anti-money laundering/know your customer practices. ICOs may also require additional oversight, such as registration and disclosures.

As for investors interested in getting into the space, it is best to understand the changing nature of regulation. This will ultimately protect investors from running afoul of the regulations and it also reduces the risk associated with investments. Ultimately, the best practices for investors include research, preparation, and understanding the regulatory marketplace.

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Former CIA Analyst Says Cryptocurrencies are Not a Threat to National Security

The article was prompted by recent news stories regarding Iran’s plans to make a state-backed cryptocurrency. It is suspected that the Iranian …

Former CIA analyst Yaya Fenusie has published a new article on Forbes arguing that although authoritarian governments are working to build cryptocurrency-based financial systems, cryptocurrencies themselves should not be feared or discouraged from a national security point of view.

Cryptocurrencies are Relevant to National Security

The article was prompted by recent news stories regarding Iran’s plans to make a state-backed cryptocurrency. It is suspected that the Iranian government has been researching blockchain technology since 2007. In July of this year, news broke that Iran’s official department for science formed a joint venture with the country’s central bank to work on developing a national cryptocurrency. The plan was intended to create a financial loophole for imposed US sanctions. Russia, one of Iran’s major allies, is reportedly pushing Iran to continue with the operation. Interestingly, Russia also attempted to help Venezuelan dictator Nicolas Maduro develop a national cryptocurrency following Venezuela’s economic collapse, but the project was quickly abandoned.

While details surrounding Iran’s national cryptocurrency project have yet to be revealed, the token is expected to be used by domestic banks for daily financial transactions. The authoritarian regime has stated that it intends to officially launch its token within three months; however, given the complexity of the project, Fenusie suspects that Iran has been secretly developing its cryptocurrency platform for well over a year.

“There should not be any doubt about the relevance of the crypto space to U.S. foreign policy and national security,” writes Fenusie. “Russia, Venezuela and now Iran are making it clear that they intend to resist U.S. sanctions by adopting blockchain technology-based mechanisms. These authoritarian regimes are looking to build an alternative financial system where there will be no repercussions for funding corruption, oppression and other malfeasance. U.S. sanctions are not perfect, nor exhaustive, instruments of foreign policy, but they are important for enforcing global standards of accountability to check nuclear proliferation, human rights abuses and terrorism.”

Suggested Reading: Learn more about potential applications of blockchain technology in our ‘What is Blockchain?‘ guide.

But Cryptocurrencies are Not a Threat

Despite the actions of authoritarain regimes, Fenusie argues that blockchain and cryptocurrency should not be perceived as direct threats to national security. As with many new technologies, criminals and corrupt governments often attempt to explore the potential for using said technology to commit nefarious acts. Fenusie doesn’t believe that Iran’s cryptocurrency will do much to bolster its national economy, as the new cryptocurrency is reported to be linked to Iran’s weak paper currency, the Iranian Rial. This will likely cool off investor interest, and even Iranian citizens are likely to find workarounds to invest in more worthwhile cryptocurrencies.

Nevertheless, in the event of future authoritarian threats involving cryptocurrencies, Funusie recommends the following policies:

  1. The US treasury department should reinforce the message that any US persons or institutions banking within the US financial system providing anything of financial value to the Iranian regime are in violation of US sanctions, regardless of whether the value is in fiat or cryptocurrencies.
  2. “The U.S. and other governments concerned about nations exploiting blockchain technology to entrench authoritarianism should acknowledge that, similar to the space race of decades ago, there is now a ‘crypto race’ emerging. The Group of Seven (G7) countries should be watching coordination among the rogue actors in this race and strategize ways to foster crypto/blockchain innovation that truly enhances economic and political freedom.”
  3. “The broader crypto space should not treat rogue regime crypto with ambivalence. Instead, blockchain tech influencers should ‘call out’ crypto schemes that fund oppressive regimes. Just as responsible cryptocurrency enthusiasts know that ICO scams hurt crypto’s image, they should understand the risk of authoritarian crypto to tarnish the technology’s reputation.”

Fenusie asserts that although the attempts by Russia, Venezuela or Iran to develop a globally accepted cryptocurrency are likely to fail, the protection against such an attempt comes from encouraging developers in free nations to produce better crypto products that defend key values like liberty.

Totalitarian regimes will always make attempts to exploit new technologies to support their corrupt systems, but this by no means implies that cryptocurrency itself is something that should be looked upon with scorn by the free world. In fact, it is only through encouraging development and productive use cases for technologies like cryptocurrencies that those who love liberty are able to protect themselves from corrupting forces.

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