Here we are in the early part of January 2015 and the state of cryptocurrency looks pretty bad.
The last few weeks have seen a number of things happen that have been bad for investors:
Bitcoin Price Crash
Bitcoin reached highs of $1,200 per coin in December 2013. Since then, its value has gradually declined. It’s always been a volatile currency but at least in 2014, it seemed to settle down in the $320-$380 range. It looked like Bitcoin might have matured somewhat.
Unfortunately, in early January 2015, the price crashed again. Today (Jan. 12th), it’s worth about $266. If …
I thought I’d provide a regular update on how my cryptocurrency investments are going on a roughly weekly basis. Hopefully, it will provide readers looking at this type of investment with some information to make their own decisions on.
Mining At Home
I’m not currently mining at home. My mining rig (a PC with a Sapphire R9 280x video card running BAMT 1.6) has been turned off for a few months now. Electricity where I live costs almost three times what it does in the USA, so that killed any remaining profits in the rig.
As you’ll know from my other recent posts, I’ve invested some money with GAW Miners and their Hashlets for cloud mining altcoins. These pay out about 0.9% (just under 1%) per day, so they look to be a good place for long-term investment. They also have a thriving community and it’s there that I first learned of LTCGear, the subject of this review. Litecoin Gear (LTCGear) have been around for well over a year, a pretty long time where Bitcoin/cryptocurrency companies are concerned. Initially the owner sold FPGA (Field-Programmable Gate Array) scrypt mining hardware to customers. But …
I wanted to give an update on how my mining contracts with GAW Miners have performed over the 1 month I’ve had them.
GAW provide three types of mining contracts known as “Hashlets”.
1. Genesis Hashlet (SHA-256)
These mine Bitcoin directly and hashlets are sold in units of 10Gh/s. Fees of $0.02 per 10Gh/s per day are charged (Gh/s is a measure of hashing power – if that means nothing to you, think of it as a set amount of computing power dedicated to mining). I don’t have any of these hashlets.
It’s been quite a week for Bitcoin, going from about $480 on Sept 10th when I ordered my mining contracts to a low of $386 yesterday (a drop of about 19% in value).
The Alibaba IPO – did it cause Bitcoin’s plunge in value in Sept 2014?
No one knows the actual cause for the drop but a good candidate is the Alibaba IPO that happened on Sept 19th. Looks like a lot of investors were selling their Bitcoins, especially in China, so as they could buy into Alibaba. Now, a day after the dust has settled, Bitcoin has returned …
After looking at the various options I talked about in the Assessing Altcoin Mining Contracts post, I decided that I’d buy Hashlets (virtual Bitcoin and Altcoin miners) from GAW Miners.
There a three types of Hashlet on offer. I was thinking about getting one or two Hashlet Primes over the weekend, but the $10 price hike on those on Monday put paid to that idea. They’re supposed to be their flagship product, but they don’t seem to do anything different to the other Hashlets apart from offering the ability to mine both Bitcoin (SHA-256) and Scrypt for $49.95. They’re also …
Update Sept. 8th. The price of the GAW Miners HashletPrime rose by $10 today to $49.95. I wrote the article below over the weekend (when the HashletPrime was still $39.99) and published it earlier today.
As I mentioned in my previous post, GPU mining of cryptocurrencies is now a dead duck for me. Rising network difficulty, the arrival of (Application-Specific Integrated Circuit) ASIC Scrypt miners and the relative high cost of electricity (US$0.24 per Kw/h) has meant that running a 390W mining rig is just throwing money down the drain. At least when the rig was …
In my ignorance of the subject, I thought that Bitcoin was the only virtual currency in existence. It turns out that’s not the case. While media attention has focused on Bitcoin, other forms of virtual currency have been created in recent years.
I became aware of these while I was researching Bitcoins and how to mine them.
Bitcoin Mining Not For Me
Having looked into Bicoin mining in an attempt to get on the bandwagon, it became clear very quickly that using your own mining rigs was just not economical. CPU mining died out in 2010 and GPU mining (using …
Remember when I asked if you ever thought you were late to the party in the Welcome message? Whatever I feel about coming late to Bitcoin in terms of investing – or should that be gambling? – I feel I’ve pretty much missed the boat on Bitcoin Mining.
You may wonder how new Bitcoins come into existence since they’re not tangible items like the coins in your pocket/purse. Bitcoin is a virtual currency and some complex math is performed by computers to solve equations. And if a result is found and verified, then Bitcoins are awarded to …
Ever felt you’re late to the party? Missed the bus? Or just not in the right place at the right time?
That’s how I feel about Bitcoin. I know many others feel the same way. Why? Because recent stories in the media have highlighted how the value of Bitcoin has skyrocketed since October 2013.
I was aware of Bitcoin back in 2009 but it didn’t light a fire under me. It looked like just another online venture that ultimately would not go anywhere. So I didn’t pay it any attention, forgot about it.