Given the interest from governments and big money, it’s safe to say that cryptocurrencies have a place in our future. This strengthens the case for investing in cryptocurrencies and tokens over the long haul. But choosing which tokens or cryptocurrencies to invest in is a tough job at present, given that new blockchain projects that introduce their own tokens/cryptocurrencies spring up on a daily basis.
There are yet to be advanced systems and models developed, such as those used in the stock market, to determine which ICO projects are worth betting on. But one effective way to easily enter the cryptocurrency market for the long haul is to invest in the aspects of the market that are fundamental to the existence of cryptocurrencies.
Here, we’re focusing on cryptocurrency mining — the transaction verification process that generates new coins and tokens. Many of the major cryptocurrencies including bitcoin, ethereum and litecoin depend on the mining process to exist. The logic is that if cryptocurrencies have a place in the digital world, then mining will always be around.
What miners do and why they’re important
Mining cryptocurrencies simply deal with the process of verifying cryptocurrency transactions and adding them to the public ledger. Recall that crypto transactions are peer-to-peer, which means there are no intermediaries. In order to maintain the integrity of the system and avoid double spending, which had been one of the things that the traditional banks do, miners serve as witnesses to transactions. To verify transactions, miners use a computer or a group of computers to solve a mathematical puzzle, called a cryptographic function, and they are rewarded with freshly generated cryptocurrency – the reward is what leads to the name mining. Miners can either sell the cryptocurrency rewards for fiat on exchanges or keep them as an investment to bet on an increase in the value of the cryptocurrency.
How to Invest In Cryptocurrency Mining
There are two primary ways to invest in the cryptocurrency mining business. You can either set up your own mining operation or investing in a mining business. If you have the technical expertise and time to start your own mining rig, as it’s commonly called, it could be profitable. However, for most people, the best option would be to invest in a mining business and one of the easiest ways to do this is to buy tokens during the ICO of a cryptocurrency mining company.
MoonLite is one such company. The MoonLite project is an industrial scale cryptocurrency mining operation focusing (initially, at least) on the mining of bitcoin, litecoin, and dash.
MoonLite is building its first data center (mining operation) in Iceland, which is the unofficial capital of world datacenters due to its inherent need for the heat energy that data centers could offer. The Moonlite datacenter will be running at roughly 14.6MW with 100 percent of the power coming from green sources. The mining company has been able to lock down a multi-year contract with a fixed energy cost with the Icelandic Power Producer at a huge discount to the local energy cost. It’s worth noting that Iceland already has one of the cheapest energy tariffs in the world.
In addition, MoonLite is taking ICO investing to another level with a profit-sharing scheme through a token buyback program. The project is designed to buy back tokens from holders who would like to cash in at the market price of the token at the time, along with the tokens’ share of the corporate profits, funded by 35 percent of the company’s profit on a prorated basis. This will not only be positive for token holders who cash in, the buyback scheme will also inherently increase the value of MoonLite tokens. That is because the company plans to “burn” every token it buys back.
Burning tokens simply mean that the company will take the tokens it buys completely out of circulation. This means (duplicate) that the value of the MoonLite project will be spread over a lesser number of tokens with each passing year. Most ICO investors have had to rely solely on the demand and supply spectrum of the tokens they buy to dictate the return they receive. Through its token buyback program, MoonLite adds an extra layer of comfort that is very attractive.
MoonLite plans to start its ICO on February 28 although it’s currently offering a presale, which will end before the start of the main ICO. Another unique thing about the MoonLite ICO is that, unlike many ICOs, MoonLite’s tokens confer voting rights on all of the company’s financial, HR and branding affairs through Secure.Vote.
That offers an extra layer of security and transparency that’s often missing in the ICO market.
To bring it all together, in a world that’s filled with over a thousand cryptocurrencies from which one is to decide which ones are worth an investment, it pays to look in the direction of companies like MoonLite who help bring cryptocurrencies to the market. Not only do MoonLite tokens offer the level of security that we’ve come to love about traditional stocks, the MoonLite Project operates in a space that is almost guaranteed to continue to grow, especially if cryptocurrencies are truly the future of money.
Presale and ICO: https://sale.moonlite.io/
Disclaimer: This article should not be taken as, and is not intended to provide, investment advice. Please conduct your own thorough research before investing in any cryptocurrency.
Image courtesy of Marco Verch via Flickr
Will Ripple (XRP) advocacy hike affect bitcoin dominance of China?
Currently, China is leading in Bitcoin mining industry by far, second to none for bitcoin mining power. Literally, it’s contributing over 70% of the network’s hash rate (a term that is used in describing the total processing power of a blockchain network). But how Ripple fits in here and what it has to do with that? We’ll talk about that a bit later below, let’s cover some in-depth facts about China’s dominance over Bitcoin first.
It’s a near-complete dominance by China on the BTC mining grid that has made it responsible for mining a majority of circulating bitcoins. A Beijing-based company, Bitmain Technologies, is highly responsible for extracting the significant part – more than half of the globe’s bitcoin, and alone, it has approached 50% of the total hash rate more than once.
The fact that China is controlling a majority of Bitcoin hash rate, clearly tells that it has the power of manipulating or merely destroy the bitcoin network if it gets enough support should it decide to take such a move. Therefore, this has led to serious concerns among countries including the US that China might get an edge in this cryptocurrency industry and possibly becoming a potential threat.
China is the biggest manufacturer of Bitcoin as well as cryptocurrency mining equipment. The reason behind the massive growth of mining farms in the country is because of cheap electricity bills.
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Bitcoin bull run momentum builds up; price breakout imminent
There is no doubt that Bitcoin is the most significant and largest success story in the cryptocurrency sphere despite the volatilities the powerful digital coin has been experiencing this year. 2018 has been a rough year for major cryptocurrencies including Bitcoin that has seen the prices of the virtual currency depreciate from a high of 20,000 US dollars in January 2018, to a low of 6,400 US dollars in October 2018.
Regardless of not much powerful performance, Bitcoin still maintains being the most sought-after virtual currency in the market. In totality, Bitcoin had a price appreciation of about 150,000 percent from its listing in July 2010 to the present day.
Bitcoins Brief Historical Evolution
In its lifetime so far, the number one ranked cryptocurrency has had its fair share of mixed bear runs, and bull runs throughout the years with the longest bear run being experienced in March 2014 and March 2015. However, in its history of up and down price progression throughout the years, gains have outweighed losses and Bitcoin has managed to record impressive highs of 20,000 US dollars as at December 2017.
As for this year, 2018 has been a nightmare for Bitcoin as its bullish gains have been low, recording shorter runs that have given rise to general losses attracting undue media attention from the general public and governments.
The Future of Bitcoin by Market Indicators
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Institutional investment presumption to send ETH, XRP, and Bitcoin high
These days it points out that institutional investors slowly are gaining interest in the cryptocurrency domain. Practically, a real-world working model will attract institutional investors automatically from all over the globe. They will look for an opportunity to invest in the cryptocurrency industry if not necessarily in coins such as Bitcoin, Ripple’s XRP or Ethereum, and it seems like that moment is already at hand.
State of the Market
The past 24 hours have been stable for the crypto market as the entire market has seen steadiness in their trade. For that reason, the general market value has been lifted to $210.6 billion.
The state of the market has seen the price of Bitcoin go up by 0.7% to the $6,537 lifting its market cap to $113.2 billion. Bitcoin cash has stayed stable too at $466 representing a slight drop of 0.56% and the market cap being $7.7 billion.
Also, Ethereum price dropped 0.59% to $205.87 giving it a market cap of $21.1 billion, and as for Ripple (XRP), a similar trend was experienced whereby it dropped by 0.15% to stand just above 46 U.S cents making its market cap to stand at $18.5 billion.
The stability in the cryptocurrencies is a positive gain as that increases hopes and chances for the institutional investments.
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