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Crypto Analyst Alex Kruger Thinks Ethereum’s Constantinople Will Hurt The ETH Mining Business

Miners Won’t Be Able To Work For Much Longer With Ethereum, According To A Market Analyst Alex Kruger The bearish market has already brought down faith in Bitcoin for many users, and their mining scene isn’t doing too swell either. Their proof-of-work protocol has already broken even three times, leaving skeptics with plenty of ammunition against them. A perfect example of this problem was featured in an op-ed piece by a MarketWatch contributor, who commented that the hashrate difficulties and more was imposing a slow death on the coin. Even though many crypto enthusiasts have debunked it, there are many that still believe that crypto mining is a problem. Specifically, Ethereum seems to be the subject of plenty of analysts’ predictions, especially considering their transaction processes. Just as Bitcoin had to bite the bullet and take the attack, Ethereum is up next. CNBC gathered data from Susquehanna, a crypto-friendly trading group, which said that small-scale mining operations are unrealistic. The average miner with a graphics card has almost no chance of profiting, even though the high was once $150 in the middle of 2017. Christopher Rolland from the group noted that even the most recent miner launched isn’t providing much of a return on investment. Based on this information, it isn’t that far-fetched to assume that miners associated directly with ETH may not be able to even process blocks soon, unless they are performing big jobs. Tim Copeland, a writer for DeCrypt Media, isn’t going to take these attacks lying down, promptly saying, “Ethereum miners are still running strong.” However, Deutsche journalist Peter Statsenko quickly shot him down, saying that the only way for Ether mining to break even with an electricity rate of $0.15 per KWH. Considering that there are many companies below this figure, miners will most likely continue hashing with their rigs. Most countries find it hard to get cheap electricity and choosing to mine in those areas is hardly worth the cost. Japan’s electricity rate, for instance, is about $0.26 per KWH, which is much higher than the level that miners can profit at. As such, the data on Ethereum’s hash rate on their network has shown that many retail miners have withdrawn. Presently, Ethereum’s mining future isn’t looking grand, and analysts in the market are making it look like the slaughter is just beginning. Alex Kruger, who is generally crypto friendly, noted that the miners left won’t necessarily do well. Explaining through a string of Tweets, Kruger started off by saying, “$ETH mining operational breakeven, paying $0.06 $/kWh for electricity, currently stands around $67 (estimates depend on operational costs other than electricity). For those buying 2nd hand RX580 GPUs and depreciating them in 1 year, breakeven after depreciation stands at $165.” He went on, bringing up the upcoming Ethereum upgrade on January 16th called Constantinople, which would reduce the block rewards, going from 3 to 2. He said, “That would increase a $67 breakeven to $101, sending more marginal miners out of business (which is short term bearish as such miners liquidate inventories in the process).” Continuing, he noted, “The increase in breakevens is not bullish on itself. Price does not follow breakevens, and in crypto breakevens do not represent a floor. However, once mining is past the initial (painful) adjustment period, less mining supply mined by fewer miners will be decidedly bullish.” While investors may be excited about the inflation for Ethereum, miners won’t have the same joy. Right now, the only thing to do is wait for January 16th.
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Grayscale Adds Stellar as Latest Cryptocurrency Investment Trust

Grayscale Adds Stellar as Latest Cryptocurrency Investment Trust Digital currency investment group Grayscale confirmed it had successfully launched its latest fund, dedicated to Stellar’s Lumens (XLM) token, in a tweet Jan. 17. Grayscale, which now operates nine cryptocurrency funds, timed the move to coincide with a change of image for its products, renaming all its […] Cet article Grayscale Adds Stellar as Latest Cryptocurrency Investment Trust est apparu en premier sur Bitcoin Central.
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Researches from MIT, Stanford Set to Replace Bitcoin with Their Groundbreaking Crypto Project

CoinSpeaker Researches from MIT, Stanford Set to Replace Bitcoin with Their Groundbreaking Crypto Project Until now, everybody has been talking about Bitcoin, the most popular and widely used digital currency. However, Bitcoin is unable to process thousands of transactions a second. Researchers from the Massachusetts Institute of Technology (MIT), UC-Berkeley, Stanford University, Carnegie Mellon University, University of Southern California, and the University of Washington have decided to fix such a weakness and develop a crypto asset better than Bitcoin. The researchers are working together as Distributed Technology Research (DTR), a non-profit organization based in Switzerland and backed by hedge fund Pantera Capital. The first initiative of Distributed Technology Research is the Unit-e, a virtual coin that is expected to solve bitcoin’s scalability issues while holding true to a decentralized model and process transactions faster than even Visa or Mastercard. Babak Dastmaltschi, Chairman of the DTR Foundation Council, said: “The blockchain and digital currency markets are at an interesting crossroads, reminiscent of the inflection points reached when industries such as telecom and the internet were coming of age. These are transformative times. We are nearing the point where every person in the world is connected together. Advancements in distributed technologies will enable open networks, avoiding the need for centralized authorities. DTR was formed with the goal of enabling and supporting this revolution, and it is in this vein that we unveil Unit-e.” According to the press release, Unit-e will be able to process 10,000 transactions per second. That’s worlds away from the current average of between 3.3 and 7 transactions per second for Bitcoin and 10 to 30 transactions for Ethereum. Joey Krug, a member of the DTR Foundation Council and Co-Chief Investment Officer at Pantera Capital, believes that a lack of scalability is holding back cryptocurrency mass adoption. He said: “We are on the cusp of something where if this doesn’t scale relatively soon, it may be relegated to ideas that were nice but didn’t work in practice: more like 3D printing than the internet.” The project’s ideology is firmly rooted in transparency, with a belief in open-source, decentralized software developed in the public interest with inclusive decision-making. The core team of the project is based in Berlin. To solve the scalability problem, DTR has decided to develop the Unit-e with parameters very close to Bitcoin’s design, but many things will be improved. Gulia Fanti, DTR lead researcher and Assistant Professor of Electrical and Computer Engineering at Carnegie Mellon University, commented: “In the 10 years since Bitcoin first emerged, blockchains have developed from a novel idea to a field of academic research. Our approach is to first understand fundamental limits on blockchain performance, then to develop solutions that operate as close to these limits as possible, with results that are provable within a rigorous theoretical framework.” The launch of the Unit-e is planned for the second half of 2019. Researches from MIT, Stanford Set to Replace Bitcoin with Their Groundbreaking Crypto Project

BitPay CEO Says Bitcoin Is Solving Real Problems Around the World

BitPay co-founder and CEO, Stephen Pair, has recently commented that Bitcoin (BTC) is solving several issues around the world. He said that in a press release uploaded a […] The post BitPay CEO Says Bitcoin Is Solving Real Problems Around the World appeared first on UseTheBitcoin.
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Trillion Dollar Market Cap, Ethereum Chain Splits & Stellar Lumens Fund - Crypto News

In this video, Mattie gives you the latest bitcoin and crypto news. He talks about the ethereum chain splitting, BitGo CEO Says Institutional Money in Crypto Can ‘Easily’ Reach Trillions of Dollars, and a new Stellar Lumens fund. This is a daily segment! ----------------------------------------------------------------------------------- CHECK OUT OUR PODCAST: New episode every Monday and Friday! ----------------------------------------------------------------------------------- Check out Altcoin Buzz Ladies! ---------------------------------------------------------------------------------- Connect with us on Social Media: Twitter: Facebook: Telegram: ---------------------------------------------------------------------------------- Looking for the best cryptocurrency wallets? Check these out: BitLox: CoolWallet S: Trezor: Ledger Nano S: KeepKey: Read about them here: --------------------------------------------------------------------------------- References: Leading Crypto Asset Manager Grayscale Launches Stellar Lumens Trust Crypto Investment Firm Grayscale Launches Fund Dedicated to Stellar Lumens (XLM) Grayscale Tweet Grayscale BitGo CEO Says Institutional Money in Crypto Can ‘Easily’ Reach Trillions of Dollars As Company Launches Cold Storage Trading Crypto’s Billion-Dollar Theft Problem Prompts Safer Way to Trade Ethereum Chain Splits, An Estimated 10% of Miners Stay on Constantinople Ethereum Upgrade – Constantinople Hard Fork Delayed VanEck to Nasdaq: Bitcoin Market Structure Expected to Improve in 2019 Nasdaq Tweet -------------------------------------------------------------------------------- DISCLAIMER The information discussed on the Altcoin Buzz YouTube, Altcoin Buzz Ladies YouTube, Altcoin Buzz Podcast or other social media channels including but not limited to Twitter, Telegram chats, Instagram, facebook, website etc is not financial advice. This information is for educational, informational and entertainment purposes only. Any information and advice or investment strategies are thoughts and opinions only, relevant to accepted levels of risk tolerance of the writer, reviewer or narrator and their risk tolerance maybe different than yours. We are not responsible for your losses. Bitcoin and other cryptocurrencies are high-risk investments so please do your due diligence and consult the financial advisor before acting on any information provided. Copyright Altcoin Buzz Pte Ltd. All rights reserved.
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