If mining difficulty won't increase, it would be a better world because mining would give a definite form of passive income.
Nowadays, even 12 year old kids know Bitcoin. It’s due to the fact that in 2017, from just being known by highly technical people, Bitcoin became a mainstream sensation due to its unbelievable surge in price. From $800 per coin in December 2016, it peaked at its highest of $20,089 per coin in December 2017. Who would not be enticed to join the crypto revolution if your savings let’s say $1,000, immediately became $25,000 in just a year? It’s a humungous 2,500% increase from your initial investment that even the Stock Market can’t compete with their 20% per year increase on average.
The trend of Bitcoin entailed a chain reaction not only to the investors and traders alike but also to the miners. A huge amount of people around the world joined the bandwagon of mining last year. These people are building their rigs composed of at least six video cards per rig for their mining venture. Not only that, after earning from their coins, they build another set, and another, and another. Mining can also be done by using special proprietary hardware but they are only made to mine specific coins so many people still prefer building their own so they can mine whatever they want. We can’t also remove the fact that there have been creations of mining farms consisted of thousands and thousands of hardware to mine cryptocurrencies. These mining farms are situated in wide areas and in countries with the cheapest electricity rates.
For non-technical people, I would be discussing first the basics. Mining is the term used for sharing your computational resources, either your CPUs or video cards, to update the transactions to everyone in the blockchain. Blockchain, in short definition, is like the interconnection of all computers in the world running a program and all blockchains have their own cryptocurrencies. Cryptocurrencies are the coins or tokens being mined or traded in that specific blockchain. The price of the cryptocurrency is dictated by the traders. A coin can be mined while a token can’t be mined. The three most famous cryptocurrencies in the world right now are Bitcoin, Ethereum, and Litecoin.
The current state of mining in the world is so inefficient. As time goes by, miners increase. As miners increase, mining difficulties also increase. If mining difficulty won't increase, it would be a better world because mining would give a definite form of passive income. Due to the increase of mining difficulty and steady increase of miners for a specific cryptocurrency, the more electricity it needs to suffice the need for mining. Majority of the electricity providers still rely on coal and fossil fuel for their source of energy. Unfortunately, coal and fossil fuel only have finite supplies so electricity providers should venture more to renewable sources of energy.
Geothermal energy harnesses the power of steam from the heat of the Earth. They’re built near volcanoes and lava springs. Wind energy harnesses the power of wind circulation. They’re built near seashores where the winds are at its most active. Hydroelectric energy harnesses the power of flowing water. They’re built in dams and rivers. Solar energy harnesses the power of the sun. They’re built on open fields and nowadays, they’re even bought by people to be used in their own homes. Despite the availability of the renewable energy sources, there are still two main problems.
Availability of Energy Sources
Energy sources are very much available but the locations where they’re situated will still create transportation and overhead costs. Geothermal energy can’t easily be harnessed because they’re mostly on faraway places from the city because of the locations of volcanoes and lava springs. Wind energy can’t easily be harnessed during hot and humid seasons. Hydroelectric energy can’t be harnessed on dry spells causing the dam to have lower water levels and rivers showing their ground. Solar energy can’t be harnessed during heavy rains and night time.
Higher Demand of Electricity
Because of the problem above, the more miners join the bandwagon, the more demand for electricity arises. The law of supply and demand states that, the more supply with less demand, the price decreases. On the other hand, the more demand but with less supply, the price increases. On average, the global price per kilowatt-hour of electricity is $0.15 so if we don’t see a massive improvement in the creation of energy, we’ll expect to see the rising of global electricity prices.
Incorporating Blockchain Technology with Renewable Energy
4New aims to be the first in the world to convert waste into electricity under a blockchain technology. It’s not just a simple blockchain technology with a digital application, their main purpose is to create power plants that would convert human wastes and garbage into water and organic materials that will then be converted into electricity that can be sold to the wholesalers and retailers of electricity or it can be used to energize the operations of the mining farm that will also be created inside their plants.
Initial Coin Offering (ICO)
The rising demand for electricity for the future needs a technology built for the future so 4New has initiated a very good opportunity to all of us via their current ICO of their token named KWatt. KWatt resembles the acronym “KW” or the word “kilowatt”. Watt is the unit of power so kilowatt is 1,000 watts of electrical power.
As of this writing (Jan. 31), the price of KWatt is around $0.9 per token. After 6 days, the price will be $1.00 per token. That’s an instant increase from your investment. The maximum supply is 300,000,000 and all unsold tokens will be burned so as to increase the demand for future users. Each KWatt has a tangible value of $0.15 or equivalent to the worth of 1 kilowatt of electricity that you can sell to the national grid or to further the operations of their mining farm.
When Bitcoin started in 2009, it was only around $0.10 per coin. Last December, it reached the price of $20,000 per Bitcoin. Blockchain technologies and cryptocurrencies are the future so we never know how much KWatt will be.
To know more about 4New and its underlying technology, you can visit their website at https://www.4new.co.uk/. Start by reading their whitepaper to have thorough information about their projects.
Disclaimer: This is not an investment advice. Invest at your own risk. Invest only the amount you can afford to lose.
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Website: https://www.4new.co.uk/
Whitepaper:
https://www.4new.co.uk/assets/4new_whitepaper-a28e4341cc447deaf521a9cf4d568a891561f234791c22248d73170d7383a10e.pdf
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Author's Bitcoin Talk Profile: emmanmalaman