Cryptocurrency

Is Mining Dead? How the Mining Industry Can Adapt to a Bear Market: Cryptotrader Andrey Elinson

What Happens Behind the EasyMining Package When it is Purchased

The beginning of 2023 did not bring any long-awaited changes to the mining industry. Instead, the situation remains challenging and tense. The market decline observed throughout the last year, the bankruptcy of several mining companies, and the drop in the cost of mining devices all seem to indicate that mining is dying and that we are witnessing its prolonged agony.

Meanwhile, Andrey Elinson, the founder of an international school of cryptocurrency trading, points to a number of signs suggesting that “the rumors of [the mining industry’s] death are wildly exaggerated.” Moreover, the expert believes the industry is confidently adapting to the bear market. During this period, it is crucial to choose the right mining strategy by taking an honest look at your options, risks, and goals.

Market Decline is Not a Catastrophe

“No one has any doubts that the ‘bears’ have a firm grip on the market. But this is a natural market phenomenon. When demand is high, prices go up in a bull market, and manufacturers make money. If demand goes down, the prices follow, causing the manufacturers to suffer.

Then comes another growth period… While they do have their differences, cryptocurrencies are still as much a market product as anything else,” says Andrey Elinson.

He notes that cheaper cryptocurrencies have naturally led to a drop in revenues from digital asset mining. The situation was made even worse by the increased complexity of mining operations, climbing electricity rates, and a substantial rise in the hash rate. In some cases, the profitability of mining enterprises plunged to the cost of production.

Andrey Elinson thinks there is no decisive answer to how long the bearish trend will prevail. In 2018, the decline lasted about a year, followed by a short period of growth in 2019 and another collapse. In total, the bearish trend persisted for 463 days. In some ways, the situation was even worse than today.

While at the end of December 2022, the average miner income per kWh of energy consumed was $0.108, in 2019, it fell as low as $0.083. “The trend we are now seeing started in April 2022. If we compare it with past periods, we can assume that it will last a few more months, although it is far from certain that the new cycle will mirror the previous one. More optimistic forecasts suggest that growth will resume as early as March 2023,” says the expert. Regardless, the industry will be able to prepare for the next Bitcoin halving in 2024, when its reserves will be sold.

The Mining Industry is Waiting for Positive Signals

The number of mining companies that will survive the crypto winter depends on how long the bearish trend will persist, as for many of them, each new day may be their last. At risk are those who have to pay too much for electricity, those who have inefficient equipment, and those who have amassed large debts and are thoughtlessly spending the cryptocurrency they have mined. Andrey Elinson believes this brings us to the main conclusion. “For the bearish trend not to ‘break’ the mining industry, it needs to adapt.

Market players need to come up with a survival strategy and master new business development tools,” he says. First, we should say goodbye to the pointless low morale and understand that the cryptocurrency market is cyclical. When it begins to grow again, the cost of the mined cryptocurrency will increase many-fold. In addition, the history of the crypto market gives no reason for pessimism.

Regardless of Bitcoin’s exchange rate, the mining industry has been growing rapidly in recent years. This is true both for the revenue from the first mined cryptocurrency and the amount of electricity consumed.

The release of new mining GPUs and the accumulation of crypto assets by major players may well signal improvement. “Bitcoin’s growing hash rate, which just may indicate the arrival of large companies in the mining game, instills optimism,” notes Andrey Elinson. He also points out the release of new energy-efficient mining equipment (e.g., by manufacturers such as Canaan, MicroBT, and Bitmain).

Even Intel has decided to enter this sector, says the expert. According to Andrey Elinson, some companies have benefited from the current situation by buying their competitors’ assets (for example, Foundry, CleanSpark, and Crusoe) or obtaining large discounts from equipment manufacturers.

Investment Horizons

Secondly, the cryptotrader says we need to learn to think in terms of investment horizons. “Now is a good time to build up an asset or enter it at a sagging price. Mining equipment costs several times cheaper than a year ago. You could easily get hold of powerful mining facilities with minimum investment,” the expert explains. Not to risk too much, patient market players buy hardware step by step, for example, once a quarter, and maintain liquidity in case equipment becomes even cheaper.

“When the market goes up, such ‘goods’ can easily be resold at a profit. Moreover, even if the situation does not improve within a year, GPUs can be used to make a profit in other ways as they are actively utilized in augmented reality infrastructure and cloud gaming. These sectors are rapidly growing and are in dire need of additional computing power,” explains Andrey Elinson.

The bear market has one more advantage, says the expert: the relatively low cost of coins. “With the next Bitcoin halving just around the corner, there is less and less time to mine low-cost coins. They will go up in price when demand rises. That is what happened during the 2012, 2016, and 2020 halvings,” he notes. However, mining’s profitability depends a lot on the cost of electricity. It is usually the market players with the lowest incoming rate and the most energy-efficient equipment who win.

No “Panic” Sales

“In some ways, the mining industry’s problem has been the arrival of numerous new players who panic at the sight of a falling market. They are in a hurry to sell assets and suffer losses, thereby creating a disturbing informational background,” says Andrey Elinson, pointing to the importance of keeping a cool head and making sound judgments.

He adds that it makes no sense to hastily get rid of assets or urgently spend the mined cryptocurrency (for example, to pay for electricity or hosting). Experienced market players recommend postponing the sale of coins until their price goes up and they can generate a high yield. When that happens, equipment prices will also rise.

Summing up, the crypto market is not going through anything extraordinary so far. The bearish trend should not scare miners because the sector’s long-term growth trend is not going anywhere, says Andrey Elinson. “A decline is a good chance for the market to cleanse itself and for new players to come. The main thing is to keep one’s composure, avoid risks, and follow long-term trends,” summarizes the cryptotrader.

Cryptocurrency

7 Main Benefits of Software that Deals with Crypto Tax, What It Is, How It Works?

As we know more people use digital money. It is hard to keep track of it. We need a report on how much you’ve made or lost for taxes. Crypto tax software is a special tool. It is made to make this easier. It helps you keep track of how much money you’ve made or lost from digital money. This also figures out how much tax you need to pay. It also tells you the rules you need to follow about taxes. Over all this software helps you do your taxes right.

How Does Crypto Tax Software Work?

Crypto tax software connects different places where you keep and trade your digital money. Here’s a simple way to understand.

Step 1. Bring in Your Data: People connect their digital money accounts to the software. The software collects details from all transactions. It can calculate things like buying and selling. It also deals with trading and moving money between wallets. This happens by linking accounts. There are special connections with all these transactions.

Step 2. Put It All Together: The software puts together all the information from different places. This makes sure nothing is missed. Everything is clear about what happened with the digital money.

Step 3. Sort Out the Transactions: It organizes transactions into groups. For example the ones that need to be taxed and the ones that don’t. The software uses the right tax rules for each group. This helps figure out how much tax is owed.

Step 4. Count the Gains and Losses: It can compare how much was spent to buy digital money with how much was made selling it. This software figures out if there was a gain or a loss for each transaction. This is really important to know how much tax needs to be paid.

Step 5. Make Tax Reports: The software creates detailed reports for taxes. For example the Form 8949 and Schedule D for people in the U.S. These reports show all the transactions. These all need to be taxed. This makes it easy to show tax authorities exactly what happened with the digital money.

7 Main Benefits of Using Crypto Tax Software

Accurate and Quick: Crypto tax software helps make sure your tax calculations are correct. It can lead to mistakes if you do it by hand lead to mistakes. The software does this automatically. So there are fewer mistakes. This is important when IRS watch crypto transactions closely.

Saves Time: Calculating crypto taxes by hand takes a lot of time. The software collects and organizes all the transactions for you. So you can do other things. This is really helpful for busy people. This saves the time that they would spend keeping records.

Easy Reporting: Tax reports can be hard without the right tools. Crypto tax software makes it easy. It can clear and simple reports that follow tax rules. You can use these reports with tax software. Or you can share them with tax experts. This is especially useful during tax season. In this you usually need everything to be correct and fast.

Following Tax Rules: Tax rules for cryptocurrencies keep changing. Crypto tax software stays updated with the latest rules. Make sure you follow them. This helps you avoid penalties and fines. It also saves you from making big mistakes. This software helps you manage your taxes confidently.

Help with Audits: During audit you need to have an organized record of all your crypto transactions. Crypto tax software keeps detailed records. This makes it easier to answer questions and give information to tax authorities. This support can be really helpful. It gives you a great peace of mind.

Supports Many Exchanges and Wallets: People who use crypto may have accounts in different places. Crypto tax software connects with many exchanges and wallets. It puts all transaction data in one place. This means you don’t have to enter data by hand. Great right? And no transaction is missed. It gives a clear view of all your crypto activities.

Tax Saving Tips: Well some advanced crypto tax software helps you find ways to save on taxes. It can be selling assets at a loss to reduce the tax you owe. These features can help you save a lot on taxes. So this software is a worth investment.

Shortly,

Keeping track of cryptocurrency taxes is really important for investors and traders. Crypto tax software helps make this job easier. It makes sure everything is accurate and follows the rules. It does this by automatic features. It gathers, organizes, and reports your transactions. This saves you a lot of time and effort.

The software also helps during audits. It also works with different exchanges. Moreover it gives you tips on saving money on taxes. This makes it a must-have tool for anyone using cryptocurrency. The right software helps you handle your crypto taxes confidently. With this you can make doing your taxes simpler. In your spare time you can focus on making the most of your investments!

Cryptocurrency

The Dogecoin Revolution: How a Joke Became a Serious Cryptocurrency

Dogecoin, initially created as a joke, has evolved into a significant player in the cryptocurrency market. What began as a lighthearted response to the burgeoning cryptocurrency landscape has transformed into a digital asset with a dedicated community and substantial market value. This article delves into Dogecoin’s journey from a meme to a serious cryptocurrency, exploring its origins, community impact, technological features, and cultural significance. For those looking to understand the intricacies of this transformation, seeking guidance from an investment education firm like BitAMG can provide valuable insights.

The Genesis of Dogecoin

Dogecoin was launched on December 6, 2013, by software engineers Billy Markus and Jackson Palmer. Markus, an IBM engineer, and Palmer, an Adobe product manager, sought to create a fun and more approachable cryptocurrency. They chose the Shiba Inu dog from the popular “Doge” meme as the logo, emphasizing the coin’s humorous nature. Unlike Bitcoin, which was seen as a complex and serious investment, Dogecoin aimed to be more accessible and user-friendly.

Initially, Dogecoin was not intended to compete with Bitcoin or other established cryptocurrencies. Its primary purpose was to provide a light-hearted alternative, fostering an inclusive and engaging environment for newcomers to the crypto world.

The Role of Community in Dogecoin’s Development

Dogecoin’s success is largely attributed to its vibrant and dedicated community. The Dogecoin community is known for its strong sense of camaraderie and enthusiasm, which has played a crucial role in the coin’s development and adoption.

One notable example of community-driven initiatives is the Dogecoin sponsorship of the Jamaican bobsled team in 2014, raising $50,000 to help the team compete in the Sochi Winter Olympics. Another example is the “Doge4Water” campaign, which raised $30,000 to build clean water wells in Kenya. These initiatives highlight the community’s commitment to charitable causes and the power of collective action.

Dogecoin’s Unique Features and Technology

Dogecoin’s technology, while based on the same principles as other cryptocurrencies, has distinct characteristics that set it apart. Dogecoin is a decentralized, peer-to-peer digital currency that uses the Scrypt algorithm, unlike Bitcoin’s SHA-256. This allows for faster transaction times and lower fees.

One of Dogecoin’s most appealing features is its inflationary supply model. Unlike Bitcoin, which has a capped supply of 21 million coins, Dogecoin has no maximum supply limit. This ensures continuous mining rewards and a steady supply of new coins, encouraging spending and circulation rather than hoarding.

Additionally, Dogecoin’s block time is only one minute, compared to Bitcoin’s ten minutes. This results in quicker transaction confirmations, making Dogecoin more suitable for everyday transactions.

Dogecoin’s Rise to Prominence

Several key events have propelled Dogecoin into the mainstream spotlight. One of the most significant factors has been the endorsement and support from high-profile celebrities and influencers, most notably Elon Musk. Musk’s tweets and public statements about Dogecoin have often led to significant price surges and increased public interest.

In 2021, Dogecoin’s market capitalization soared, reaching an all-time high of over $88 billion in May. This rise was fueled by a combination of social media hype, celebrity endorsements, and increased trading activity on platforms like Robinhood and Coinbase.

The widespread media coverage and community-driven marketing efforts have also played a crucial role in Dogecoin’s rise. The “Doge Day” event on April 20, 2021, aimed to push Dogecoin’s price to new heights, demonstrating the power of collective action and social media influence.

The Transition to Seriousness

Dogecoin’s transition from a joke to a serious cryptocurrency can be attributed to several factors. Firstly, the coin’s growing adoption and integration into mainstream financial services have legitimized its use as a viable digital asset. Companies like Newegg, the Dallas Mavericks, and Kronos have started accepting Dogecoin as a form of payment, showcasing its utility in real-world transactions.

Secondly, the increasing attention from institutional investors has added credibility to Dogecoin. While initially dismissed as a speculative asset, the involvement of major investment firms and the listing on prominent cryptocurrency exchanges have validated Dogecoin’s potential as an investment.

Lastly, the community’s efforts to promote charitable causes and positive social impact have reshaped Dogecoin’s image. The coin is no longer seen solely as a meme but as a tool for philanthropy and community building.

Dogecoin’s Impact on Cryptocurrency Culture

Dogecoin’s influence extends beyond its market value; it has significantly impacted the broader cryptocurrency culture. Its success has challenged the notion that a cryptocurrency must be serious or technologically superior to succeed. Dogecoin’s rise has demonstrated the importance of community engagement, accessibility, and fun in driving adoption.

Moreover, Dogecoin has paved the way for other meme-based and community-driven cryptocurrencies, such as Shiba Inu (SHIB) and SafeMoon. These projects have followed in Dogecoin’s footsteps, leveraging humor and social media to build their communities and gain traction.

Dogecoin’s philanthropic initiatives have also inspired other cryptocurrency projects to focus on charitable giving and social impact. The emphasis on using cryptocurrency for good has resonated with many and has helped to foster a more positive and inclusive crypto culture.

Conclusion

Dogecoin’s journey from a joke to a serious cryptocurrency is a testament to the power of community, innovation, and accessibility. What started as a lighthearted experiment has evolved into a significant player in the digital currency landscape, challenging traditional perceptions of value and utility. As Dogecoin continues to gain traction and legitimacy, its story serves as a reminder of the diverse and dynamic nature of the cryptocurrency world. Whether as a tool for charitable causes, a medium of exchange, or a speculative investment, Dogecoin has carved out its unique niche, proving that sometimes, even the most unlikely contenders can make a lasting impact.

Cryptocurrency

Ethereum Essentials: Essential Tips for Successful Crypto Investment

Ethereum, the second-largest cryptocurrency by way of market capitalization, has garnered big interest and hobby from buyers worldwide. However, navigating the Ethereum marketplace requires a stable information of its essentials and strategic funding technique. In this text, we’re going to delve into the vital suggestions for successful crypto investment in Ethereum. Go https://ethereum-code.me now and learn some game changing tips and tricks to make solid investment decisions. Connect with an educational expert right now!

Understand Ethereum’s Technology and Ecosystem:

Before diving into Ethereum investment, it is vital to understand the underlying generation and the atmosphere it supports. Ethereum is not only a digital foreign money, but a decentralized platform that enables builders to build and install smart contracts and decentralized programs (DApps). Understanding Ethereum’s technical fundamentals, consisting of its consensus mechanism (presently transitioning from Proof of Work to Proof of Stake with Ethereum 2.0), scalability answers, and upcoming upgrades, such as Ethereum 2.Zero, is vital for making knowledgeable funding decisions.

Diversify Your Portfolio:

Diversification is a key principle of a hit investment, and the equal applies to making an investment in Ethereum. While Ethereum holds enormous capability for growth, it is critical now not to put all your eggs in a single basket. Consider diversifying your cryptocurrency portfolio across more than one assets, consisting of Bitcoin, other primary cryptocurrencies, and promising altcoins. Diversification facilitates spread hazard and decreases the effect of volatility in any unmarried asset on your standard funding portfolio.

Stay Informed About Market Trends and Developments:

The cryptocurrency market is notably dynamic and causes rapid modifications in developments and tendencies. Staying knowledgeable approximately marketplace traits, news, and traits in the Ethereum surroundings is essential for making knowledgeable funding choices. Follow reliable cryptocurrency news assets, join Ethereum-centered boards and groups, and engage with industry experts to live updated on the ultra-modern tendencies, upcoming enhancements, partnerships, and regulatory adjustments that could affect Ethereum’s rate and market dynamics.

Keep an Eye on Network Activity and Adoption:

Monitoring Ethereum’s community hobby and adoption metrics can offer valuable insights into its growth and ability rate moves. Metrics along with daily transaction extent, lively addresses, decentralized finance (DeFi) hobby, and developer pastime at the Ethereum blockchain can help gauge the community’s health and adoption developments. Increasing community interest and adoption imply developing demand and application for Ethereum, which may additionally definitely impact its price over the years.

Consider Long-Term Investment:

While short-term trading and hypotheses can yield income, don’t forget adopting a long-time period investment method for Ethereum. Ethereum’s capacity for long-time period growth is supported by its robust era, massive adoption, and increasing atmosphere of DApps and decentralized finance (DeFi) tasks. By taking a long-time period attitude and preserving onto your Ethereum funding via marketplace fluctuations, you can enjoy the capacity appreciation in fee over time and capitalize at the increase of the Ethereum environment.

Practice Risk Management:

As with any investment, it’s vital to practice effective hazard management while investing in Ethereum. Set clean investment goals, set up chance tolerance levels, and diversify your investment portfolio to mitigate capacity losses. Additionally, consider imposing chance management strategies which includes setting prevent-loss orders, carrying out thorough studies before making funding decisions, and fending off making an investment more than you could have the funds for to lose.

Conclusion:

Investing in Ethereum gives huge opportunities for investors looking for exposure to the cryptocurrency market. By information Ethereum’s technology and ecosystem, diversifying your portfolio, staying knowledgeable about market tendencies and developments, tracking network hobby and adoption, considering long-term funding, and working towards risk management, you may function yourself for a hit crypto investment in Ethereum. As Ethereum keeps adapting and innovating, it stays a cornerstone of the cryptocurrency atmosphere, providing potential for lengthy-term growth and cost creation for traders.