Last week, the fourth-largest cryptocurrency hack ever took $323 million from Wormhole, a blockchain bridge. (A blockchain bridge does exactly what it says: it allows users to transfer cryptocurrency from one blockchain to another.) While Wormhole owner Jump Crypto compensated the victims of the breach within hours, many doubts persisted.

Although the event resulted in exploitation and financial losses for the firm that distributed the software, investor monies have been returned. Why was the hack feasible? Who was the perpetrator? And how did Jump Crypto come up with $323 million in cash to make things right? Let’s get started.

What’s Wormhole?

Wormhole is a decentralized finance (DeFi) platform that allows users to exchange Solana for other cryptocurrencies directly on decentralized apps (dApps) running on the Ethereum blockchain. Solana and other leading decentralized finance (DeFi) networks use Wormhole as a communication bridge. Existing projects, platforms, and communities may use Solana’s fast speed and cheap cost to transport tokenized assets smoothly between blockchains.

Jump Crypto

Many users were perplexed as to how Jump was able to come up with that much cash so quickly. Jump Crypto is a branch of a decades-old trading business that has just made a huge push into cryptocurrency, employing roughly 140 employees in the process. It’s unclear how it generates all of its money, but completing crypto transactions made by Robinhood members appears to be a big contributor, a right it paid Robinhood $247 million for in the first nine months of last year.

What Happened

A software error allowed an anonymous hacker to mint 120,000 wrapped ETH on the Solana network without posting the requisite collateral on Ethereum, resulting in a $323 million loss. Wormhole halted all token transfers on its bridges shortly after discovering the breach to begin repairing the vulnerability, which took roughly 16 hours. Jump has restored the stolen ETH by Thursday AM, assuring that no user money had been harmed.

The attacker falsified a transaction’s signature in Wormhole, then presented the invalid transaction as a legal one to the Solana network, allowing for the fraudulent minting of a significant amount of ETH tokens on the Solana network. They subsequently moved many of the tokens to an Ethereum-based digital wallet.

Could This Happen Again?

The hack brought to light the vulnerability of crypto bridges. It’s challenging enough to create safe and secure smart contracts on a single blockchain. As demonstrated by the exploit, Wormhole, which interacts with six chains (Avalanche, Oasis, Binance Smart Chain, Ethereum, Polygon, and Terra), faces an exponentially more difficult challenge. Because of the complexity of writing for several chains, security experts like Dan Guido, CEO of the security firm Trail of Bits, deem blockchain bridges “among the most challenging programs to develop.”

Wormhole, a cross-chain bridge, with a market cap of more than $20 billion, and Ethereum co-founder Vitalik Buterin has highlighted the security flaws with such applications. Wormhole was, in fact, the second bridge to be exploited in less than two weeks. DeFi is still fairly new to us, and although it has a lot of advantages outside of traditional banking, it also has a lot of drawbacks. Check that a protocol’s smart contracts have been audited and that you’re following best practices to keep your crypto safe before utilizing it.

The fundamental difference between the Proof of Stake (PoW) model and the Proof of Work (PoW) model can only be understood by reviewing the history of cryptocurrency and blockchain technology. If we go towards the origins of the first blockchain-based digital currency, i.e., Bitcoin, the cryptocurrency was created as a reaction to the distrust in the global financial system caused by the big banks (who people felt had a role to play in causing an economic collapse). Because of such distrust, people felt unsafe handing their money to centralized financial institutions.

The original creators of Bitcoin designed the Proof of Work (PoW) blockchain model that created a secure method to store your funds, fundamentally making it impossible for any outside authority (such as any government) to gain access to it. But while the PoW model promised security, the heavy electricity consumption required as a trade-off when mining became the primary argument against the currency’s adoption. For the market to grow, an alternative was required as well. The “Proof of Stake (PoS)” model emerged, designed to operate in such a way that mining would not be required.

This is not a problem for trading platforms like Immediate Alpha that can handle both PoS and PoW models, but the issue of power consumption is worth considering when you are looking at holding your coins for a long period.

Today, both Proof of Work (PoW) and Proof of Stake (PoS) models are being used by different projects. Both models have their own trade-offs, which must be looked at if we are to assess which one has better utility with less downside.

The Proof of Work (PoW) Model

When the concept of ‘decentralized systems’ was first proposed, there needed to be a way for the network to run without the need for a central authority operating everything. The Proof of Work (PoW) proposed a consensus-based method by which volunteers from all over the world would share processing power to a common blockchain network.  The model incentivized volunteers who would “mine” in order to update and run the blockchain. The “miners” would be rewarded in cryptocurrency (such as Bitcoin) that could then be cashed as regular real-world money.

The most famous cryptocurrencies using the PoW model include Bitcoin and Litecoin. Because the entire cryptocurrency market follows Bitcoin, it can be argued that even today the PoW model dominates the crypto ecosystem.

Security

The Proof of Work (PoW) model was first used by Bitcoin and provided an extremely secure method of storing your funds. The encryption that PoW provided is extremely secure and has never been compromised. Even today, Satoshi Nakomoto’s wallet holds tens of billions of unclaimed dollars, that no hacker has been able to access due to the secure nature of the network. The security exists due to miners all over the world solving complex puzzles that in turn support the functioning of a cryptographic system, which becomes more complex to solve as more miners join the system.

Mining, Processing Power, & the Electricity Consumption Trade-Off

While the Proof of Work (PoW) model is able to provide high security, the trade-off is the large processing power required. Powered typically by mining, the PoW model is a sort of race between miners to solve a puzzle, with the first one to solve it being rewarded. Because the model incentivizes miners to have high processing power at their disposal to solve the puzzle first, this in turn raises the overall electricity consumed by the network. The high-power consumption attached to the PoW model has been a critical point of concern when talking about scalability. Environmental concerns have also created a mainstream argument against miners, with certain countries such as China banning miners altogether. 

The Proof of Stake (PoS) Model

Like the PoW model, the Proof of Stake (PoS) model is built on a consensus-based algorithm, where the core philosophy of keeping any central authority out of the blockchain network remains the same, as volunteers participate to keep the blockchain running. But unlike PoW where miners pool their computational power to keep the blockchain running, PoS requires participants to pool their funds through staking.

For any transaction taking place on the blockchain to be validated, the validator is chosen based on the number of funds staked. The more money you have staked on the blockchain network, the higher the chances of you being selected as the validator.

Lower Power Consumption

Because actual hardware that is required to solve complex puzzles is not there, the Proof of Stake (PoS) model inherently requires relatively less power consumption in order to keep the network running. The network validates transactions and functions based on the amount staked by participants, thus removing the primary issue of environmental hazards that mining created.

Easier to Scale

When we talk about scalability, the issue that arises with PoW is that better hardware that has higher computational power is required as time passes on because the complexity of the “puzzles” that need to be solved increases. Not only does this increase the overall processing power required by the system over time, but it also makes it harder to scale the system.

Today, new cryptocurrency projects choose to build over a Proof of Stake (PoS) model because it is easier to scale. Many within the cryptocurrency community see PoW as outdated, as it was adopted to be used in currencies like Bitcoin and Litecoin when there was no alternative at the time. Since the rise of PoS, many have preferred it as a better option. Ethereum’s famous transition from PoW to PoS is a primary example of projects adopting the newer model in order to scale better.

The Concerns of 51% Rule in PoW & the Safety in PoS

The 51% rule is a scenario known within the crypto-community especially for Proof of Work (PoW) based networks, where miners take control of the majority mining pool and use it to hijack the blockchain network. Since the network runs on a consensus mechanism, any individual/group controlling 51% of the total consensus involved will obviously be in control, possibly creating fake blocks for themselves and invalidating other transactions.

Because of the nature of PoW, it is more likely that miners try to attempt such a scenario when mining rewards become too small. However, with Proof of Stake (PoS), the potential hijackers would need 51% of the total currency supply in order to take control, which is a very unlikely scenario to happen.

Final Verdict: Proof of Stake (PoS) or Proof of Work (PoW)

Despite the improvements that Proof of Stake (PoS) promises, it is unlikely that cryptocurrencies running on Proof of Work (PoW) will go away anytime soon. This is because Bitcoin (running on PoW) is unlikely to go away, which means miners are here to stay for long. However, many cryptocurrencies attempting to do more than Bitcoin, such as Ethereum, will probably move forward with PoS because it can maximize the utility that can be added by the project.

It is hard to argue against Proof of Stake (PoS) being a more efficient alternative, as it solves major problems such as scalability issues, power consumption, and the issue of high processing power required. This is why PoS is fundamentally more efficient than its predecessor, and will probably be adopted by more and more projects unless something better comes along. But at the same time, the high security that PoW provides will be a major reason why some tried and tested cryptocurrencies, such as Bitcoin, will also remain dominant. 

Over the last few years, cryptocurrencies and blockchain technology have become not only talking points but also have seen multiple use cases across every industry. The adoption of crypto technologies is rising in the movie industry as well. Numerous companies in this space started accepting cryptocurrencies for payments, while others tried to take advantage of blockchain technology. For example, some animation studios tried to find how to invest in Golem tokens since they allow them to get extra processing power for rendering computer-generated imagery (CGI). 

According to a recent report from Industry Research, blockchain can help the movie and entertainment industry reinvent business functions and facilitate transactions. One of the blockchain-based technologies that can make it is NFT. NFTs use blockchain technology to verify ownership of unique digital assets and create secure transactions to authenticate digital art.

The craze around NFTs has swept across content industries in 2021, and Hollywood hasn’t been left out. In the first half of 2020, the total NFT sales added up to about $250 million. But the NFT sales for the same period in 2021 grew almost tenfold, reaching $2.47 billion. In October 2021 alone, NFT market sales surged to $4.2 billion.

Much of that trading activity is related to speculators who buy assets to find another buyer and earn profits. However, most media companies insist they started using NFTs not to make a quick buck. Let’s find out how Hollywood already tried to use NFTs.

Big Names Join the NFT Craze

In March 2021, Legendary Entertainment partnered with Boss Logic and Terra Virtua Ltd to launch two NFT collections related to the “Godzilla vs. Kong” movie. It was one of the first big moves from Hollywood in NFT that was gaining hype at that point. The company offered fans to buy exclusive collectibles of the two monsters fighting. It helped Legendary Entertainment to get both a new revenue stream and a new way to promote the movie.

Warner Bros. used the same approach by launching the sale of 100,000 NFTs of “Matrix”-inspired avatars in November 2021. The price for each NFT was $50, giving the company potential $5 million in revenue. But as for Legendary Entertainment, this event was more about promoting the “The Matrix Resurrections” movie released in December 2021.

Disney has released a series of “Golden Moments’ NFTs, featuring iconic characters and items to promote Disney Plus and drive up streaming subscribers. In selected markets, owners of “Golden Moments” NFTs were also able to receive a three- or a 12-month subscription for Disney Plus.

Hollywood sells not only images as NFTs but video content as well. Lionsgate released a “Saw”-inspired video collectibles before Halloween, and the limited-edition of NFTs quickly sold out. Lionsgate has seen $500,000 in sales for six NFT pieces. Then the company pointed out that NFT is just a way to extend entertainment franchises.

Some companies are counting on NFTs to be something more than a one-time promo opportunity and see them as a sizable option to generate revenue. For example, Fox Entertainment formed Blockchain Creative Labs with Bento Box. Blockchain Creative Labs is a content studio with $100 million in funding to launch the NFT initiative for Fox and third parties. Marvel joined Fox in similar ventures, creating NFTs from popular comics characters and other parts of the universe.

Despite the slight hype fading around NFT by the end of 2021, media companies continue joining the space. In the spring of 2022, ViacomCBS is planning to introduce its own NFT platform in partnership with startup Recur. The platform is expected to feature characters and content from Nickelodeon, MTV, Paramount Pictures, and Showtime brands as NFTs. 

Movie as NFT

NFTs are also seen as a way to fund independent filmmaking. A startup NFT Studios is aiming to produce a first-ever movie that will be fully funded by NFTs, selling 10,000 NFTs to the public and institutional investors. The startup hopes to raise $8-10 billion from this initiative and promise that those who buy NFTs will get a share of any profits and meet the stars of the production. According to NFT Studios co-founder Niels Juul, such a way should “democratize the process” of filmmaking and circumvent a Hollywood system under which smaller productions take up to eight years to reach movie or TV screens. Niels Juul also expects to begin shooting by April 2022.

The Indie project “Zero Contact”, starring Anthony Hopkins, claims to experience a significant payoff from NFTs. The production company Enderby Entertainment that financed the movie decided to distribute the film via its own NFT platform Vuele. In September 2021, Vuele released 11 limited NFT copies of “Zero contact”, seeing $100,000 in sales. Rick Dugdale, CEO of Enderby Entertainment and co-founder of Vuele said that these 11 buyers were cinephiles and crypto enthusiasts who “wanted to own a piece of history”. Vuele plans to release another set of NFTs and “that’s it”, forming some kind of artificial scarcity for the movie.

For Hollywood and media companies, NFTs could become a new way to promote and monetize intellectual property, increasing the engagement of fans. But most of Hollywood’s NFT initiatives are currently experimental toes in the water to find the appropriate use of technology. The true power of NFTs in Hollywood has yet to be realized. Potentially, NFT may help Hollywood resolve such issues as content piracy and funding independent projects but NFTs have to resolve a lot of their own issues to accomplish that.

Blockchain is not going away. In fact, more and more businesses are investing in it. This encrypted, distributed database model proved its potential when it comes to security and online trust. As a result, 2022 will see a continuation of businesses heavily investing in developing new things. This brings us to the following trends highlighted by Crypto specialists in regards to what next year holds for us.

Greenifying The Blockchain

The big problem blockchains face right now is that they generate carbon emissions at very high levels and tend to use too much energy for some people. This is why Tesla stopped accepting BTC payments at the beginning of 2021. In 2022, it is certain greenifying the blockchain will be a priority.

Several options are being investigated right now. The most popular one will be used by Ethereum, which wants to move to proof-of-stake (POS) instead of proof-of-work as soon as possible. The other interesting option we already know about is using renewable energy.

NFT Expansion

NFTs (non-fungible tokens) were very popular in 2021. It was primarily used in art but it also saw a degree of popularity in music. Artists like Shawn Mendes released some tracks by using the NFT format.

2022 is when we will surely see NFTs making their way into several other industries. Gaming is the first one that comes to mind but it should be noted that even fashion brands like Nike and Dolce & Gabbana created items with NFTs associated.

New Countries To Adopt National Cryptocurrencies And Bitcoin

2021 was a big year for Bitcoin as we saw the first country to officially list it as legal tender in El Salvador. This means BTC can actually be used to make payments for services and goods. It is even used to pay salaries. With this precedent created, 2022 will surely see other countries doing the same thing.

We should also highlight national cryptocurrencies. Growth in this part of the industry is expected in several countries like Ecuador, Tunisia, Singapore, and China, which already created what is needed for the launch. Countries like Estonia, Sweden, and Japan will join the trend as soon as possible.

IoT Integration

Blockchain technology is perfect for IoT since it creates records of transactions and interactions. This might help solve several scalability and security problems linked to encrypted, automated, and immutable transactions. Even micropayments might be done with the use of cryptocurrencies in an automated manner pretty soon.

The current adoption of 5G technology allows for much higher connectivity between appliances and smart equipment. Speed is faster and blockchain transactions can join the fray for extra security and scalability.

The Use Of Blockchain Technology For Vaccine Tracking And Manufacture

The pandemic that started in 2020 will not go away in 2022 and it does look like blockchain technology will step in to give a helping hand. Counterfeiters are already being reported so blockchain could be used to guarantee vaccine shipment authenticity. Also, blockchain has the capability of helping guarantee supply chain integrity.

IBM already created a very interesting system that gives access to coordination between varied and different healthcare authorities and agencies involved in the distribution of vaccines. Blockchain unifies vaccination efficacy and rates statistics, giving access to an extra tool that can be used to make sure people that actually need the vaccine can get it as fast as possible.

The market capitalization of Bitcoins has been found to be $913.1 billion till December of 2021. Bitcoin is indeed one of the most important digital assets in the market. It is added among the lists of the most successful digital currencies all over the world. It is a revolutionary concept. The very first Bitcoin which had been traded in the market or exchange-traded fund (ETF), launched in October of 2021. This has given a new boost to cryptocurrency in the market. To know more about ETF, Bitcoin, and trading, visit bitcoinx.

The sudden and unprecedented rise of Bitcoins from 2009 has created a diversified portfolio of investors. The categories of investors have been divided into millionaires and billionaires. Most of these millionaires have been cashing off the ever-growing ecosystem of Bitcoins and cryptocurrencies in the market. The others have been judicious enough to create their own brand of financial products. Their tokens have been accepted by the other traders and created millions in return. The surge in popularity of Bitcoins has been entirely the contribution of the investors who believed in its power.

Bitcoin can never be considered among the group of risky assets. The absence of any kind of central or regulatory body has created an open path for volatility. The criminals and investors are interested in the field with the same energy. Smaller drawbacks have not held the billionaires back. Rather, they thought it would be interesting to invest in something which has economic opportunities with some risk elements.

Owner of the Most Bitcoins

• Did you know that Bitcoins had been created by an anonymous internet entity? Yes, Satoshi Nakamoto had been the anonymous designer of Bitcoins and it is believed that he had mined more than 22,000 blocks in the platform.

• It is also rumored that the creator had hold of one million Bitcoins just as cumulative rewards for his great works. It is strongly believed that Satoshi has the greatest number of Bitcoins in the entire world. 

• He has more than 1 million BTCs and it has been valued at about $ 4,500,000,000 in present times.

Billionaires in Bitcoins

• Three Bitcoin addresses have more than 100,000 Bitcoins each. None of these include Satoshi.

• Binance, Bitifinex, and another unnamed company have their names on the list of being billionaires in Bitcoins. 

• They collectively have 575,000 Bitcoins in their collection. That is something hard to contend with.

Companies With the Most Number of Bitcoins

• Large corporations like Microstrategy, Galaxy Digital Holdings, and Tesla own treasuries worth in Bitcoins.

• They do so in order to protect their assets against any kind of inflation of prices. 

• Negative yield bonds can also be countered in this manner. They issue corporate bonds with lower rates of interest. Cheap debt is created by these enterprises to earn profits as soon as the dollar prices inflate. 

• Bitcoins can also help to pay off the debts of these companies when required.

Public Companies

• Public companies collectively own about 216,038 Bitcoins. This is about 1.029% of the total supply of Bitcoins in the blockchain market. 

• Ten of the famous public companies have a balance of 200,000 Bitcoins in total. 

• Microstrategy on itself has more than 105,000 Bitcoins which is about 0.05% of the entire supply. Corporate strategies include the development of a treasury which can keep the bonds safe. 

• The tactics have allowed Microstrategy to acquire Bitcoins at a low rate and sell them beyond expectations. 

• Tesla has about 42,902 Bitcoins in the market. 

• Galaxy Digital Holdings has 16,400 Bitcoins in its treasury.

Private Companies

• According to the data and statistics, private companies have about 174,068 Bitcoins in the collection. 
• This is about 0.829% of the entire collection. 
• Block. one, a Chinese company, has about 140,000 Bitcoins in its treasury.

Governments in Bitcoin Holding

• All governments around the world have accumulated 259,870 Bitcoins in their possession. 
• Bulgaria is claimed to own 213,519 Bitcoins and Ukraine comes around with 46,351 Bitcoins from the market.
• The United States of America has about 70,000 Bitcoins in the cache. FBI and other agencies are responsible for the safekeeping.

Conclusion

Companies are no longer conservative about buying and selling Bitcoins in the market. They have realized that corporate bonds can turn out to be better with Bitcoins in their possession. The public companies of the United States have tried to hold Bitcoins in their own treasuries. This has been done as a precaution against Bitcoin price falls. The interests in terms of Bitcoins will always be in the field as long as virtual assets are accepted by the investors. 

If you are thinking about the price rises in the case of Bitcoins, you would be surprised to know that the prices had reached $68,000 in 2021. The prices had again fallen to $46,000 in the last month of 2021. The prices undergo a continuous rise and fall and this might determine the profit and loss for the traders in the market. To know more about profit and loss in bitcoin, click here.

The highest point in terms of the Bitcoin price is quite significant. The price had been just $30,000 in January. The prices undergo wild changes every day and it is expected that they can change even by the minute. The prices of Bitcoins can move easily up from $45,000 to more than $50,000 in a single month. The lowest has been stabling for quite a bit in the last weeks. If the prices stick to this in the end, the investments will increase.

The volatility of Bitcoins as stated by the experts will continue to be high in the upcoming days. The experts have stated that the prices may reach $100,000 in the upcoming days quite soon. The investors must be very careful about the strategies they are using as the prices are bound to rise in the next year. If a major part of their portfolio is dedicated to Bitcoins, their caution must reach the threshold value by now!

The steady rise of Bitcoins is something that is always wanted by investors. It is reasonable for traders to anticipate the primal rise of Bitcoins. Let us get to know a bit about the series.

Getting to the Value of 1 Million

• There are about 6.25 new Bitcoins that are already issued by the miners. The statistics are set at each investment by 10 minutes. The total supply chain will be capped at a value of 21 million. 

• Millions of coins might be lost within the blockchain forever and this cannot be attained at any cost. The coins have been mined till now and the data has been set according to that.
• The global market is estimated at a value of $119 trillion at this moment.
• Many of the bonds in the corporate world are at their lowest in this very instant. Negative bond yields have plagued investors for a very long time. 
• The thoughts about the bonds reaching the values of trillion are not magical or even wonderful! If the math checks out, Bitcoins are likely to to have greater values than bonds in the present market.

The bonds which are not quite acceptable in the market right now will be absorbed gradually. Bitcoins will absorb this price and this will gradually entertain the bond size of Bitcoin investments. The case of simple supply and demand will come into the picture and the investors will find Bitcoins to be more profitable. The subset of the total supply of Bitcoins will be increasing with increased time and the invested traders will benefit from it.

Impact of Other Markets

• The two percent value which is held by the global equities in terms of gold will be simplified into the view of Bitcoins as well. 

• The combined four sectors like bond, gold, stocks, and real estate will be brought under the jurisdiction of Bitcoins and the values will increase exponentially. The opportunity for growth will be quite evident in this case for the Bitcoins in the market.

You have to remember that although these are quite well accepted in the market, you cannot hope to get all Bitcoins in your collection. The pressure on the prices of Bitcoins may not come right now but it will be coming quite soon. The investors must not pull out of the market during this hour.

Conclusion

It is not very easy to say exactly how each of these sectors is going to pan out. The investors must go with their gut feeling at some moments in the trade. There is only data assimilation of 10 minutes in case they wish to get their statistics in order. There are ways in which the traders can be realistic and creative to make sure that the future becomes certain for them in this volatile atmosphere. This alone can save them from any kind of uncertainty in the future. 

The cryptocurrency was not initially accepted as one of the best modes of virtual assets in the world. It was considered a potential disaster that could strike the financial system. This was the scenario in 2007. In 2018, the hottest topic of discussion is Bitcoin, a type of cryptocurrency. The potential with which it can change the world has changed from what it was in 2007. Most investors have found that it is one of the best places in which they can get their money into. The acceptance of cryptocurrencies in the market has been a major milestone in the financial market. For more information about bitcoin and trading, visit https://bitcoinsystem.app.

The economy of the United States took a hit in 2020 after the pandemic. The investors panicked during this phase and sold most of their assets. The price of Bitcoins fell to about 50% of its actual value. The entire crypto market was affected by this fall in price in Bitcoins. The fallen market did not take much time to get from its depths. 2021 became the redeeming year for Bitcoins. The all-time high of Bitcoins reached about $60,000 this year. The value of the entire market was estimated at 1.5 trillion USD. This gave hope to several investors in the market.

Many of the investors of reputed companies have realized the actual potential of Bitcoins or any kind of cryptocurrency. The entire ecosystem is dynamic and it is growing at a very rapid rate. The crypto billionaires have been interested in the field for a very long time. New investors are using online trading tools like Immediate Connect to make their claim to the billionaire’s fortune. The time is now to make your mark in the crypto trade to earn greater profits in the future.

Billionaires in the Crypto World                     

The market of cryptocurrency is not something that has the monopoly of the traders or adults. If you are smart enough to get your investments in a profit, the crypto market is welcoming for all age groups and professions. The implementation of the ideas which are related to the crypto market can help to bring riches into one’s house. The names which have stood out among the others have been named here for the novice traders to learn and implement!

1. Sam Bankman-Fried 

• Bankman-Fired has been one of the top people who have the highest worth in terms of cryptocurrency in the market. 
• His assets have doubled up to $22.5 billion. 
• He is the wealthiest person in the world of cryptocurrency.
• The young man is of just 29 years and he is a pass out from MIT. 
• Alameda Research was founded by him.
• He already owns a quantitative trading firm. 
• There are other popular derivatives in the market and FTX under his company as well. 
• He had donated $5 million to the campaign of Joe Biden in 2020.

2. Brain Armstrong

• Brain Armstrong is considered to be yet another person who is a giant in the world of cryptocurrency. 
• $11.5 billion is his net worth.
• He is the co-founder of Coinbase. 
• He has the ownership of his company by almost 19% and almost $1 billion in his revenue. 
• He has several portfolios in Bitcoins and Altcoins. 
• His portfolios have numbered up to $10 million.

3. Chris Larsen

• Chris Larsen has a net worth of $6 billion in the market. 
• He is also the co-founder and chairman of Ripple. 
• He has seen the rise in his fortunes by $800 million with the XRP soaring in his company. 
• He also owns about 3 billion tokens of XRP. 
• Ripple itself has several large customers. 
• The mortgage lender E-Loan in 1996 and Prosper has him as their founder. 
• Larsen is also known for his philanthropic nature. 
• He had donated about $25 million to San Francisco University in XRP.

4. Tyler and Cameron Winklevoss

• These twins were former Olympic rowers who had sued Facebook for stealing their idea. 
• They each have 4.3 billion USD in their net worth. 
• They are also the founders of Gemini which is a famous crypto exchange platform.
• Their investments in different portfolios have gathered attention from various places.

5. Michael Saylor

• Saylor is not like these giants but they do have 2.3 billion USD in their pockets and are the CEO of Microstrategy. 
• He has risen to the heights in the year 2020 when the prices of Bitcoins fell to the depths.

Conclusion

The billionaires and millionaires who have made their name in the world of cryptocurrency are nothing less than geniuses. There are chances and strokes of luck but none of these areas are considered to be long-lasting contributions. If you are thinking of getting into the market, better not dally and jump right into it.

Cryptocurrency and energy consumption are two words we are hearing a lot recently. With the popularity of cryptocurrency, especially Bitcoin soaring to epic heights, there has been a prominent increase in Bitcoin miners who have entered this profession. Hence, more power-hungry machines and computers are being operated than ever before by miners to achieve a small profit from every Bitcoin transaction that goes through.

Nevertheless, with rising electricity charges and the occasional fluctuation of the value of Bitcoin, is mining Bitcoin just as profitable as it is made out to be? In this blog, we will closely look at the profitability aspects of Bitcoin mining at normal electricity cost.

Why Are We Focusing on Energy Consumption?

Bitcoin mining incurs three major costs:

1. The cost of energy that is being consumed due to mining;
2. Expenses such as overheads incurred for the maintenance of a crypto farm or a single rig;
3. The cost incurred of purchasing, replacing, and renewing the mining hardware.

Out of these three, the cost of energy consumed is the primary element that is focused on. The reason for this is that energy is the only cost whose value can be accurately calculated with some approximation. Moreover, carefully analyzing the impact of Bitcoin mining on energy resources provides an overview of the growth of the industry.

In comparison, maintenance costs and overheads cannot be estimated precisely because they vary depending on the size, the location, and at what scale the crypto farm is operating. Furthermore, such details are not always available to the public either. Thus, an accurate cost analysis regarding this element cannot be calculated.

Similarly, at the rapid rate of technological development, even relatively recent mining hardware is becoming obsolete. However, it is not plausible that the Bitcoin mining industry purchases or renews their already existing hardware to the upgraded novel hardware. Hence, it would be more feasible to assume that there is a healthy mix of recent and old hardware systems coinciding within the Bitcoin network. Moreover, with the fluctuating progress of the development of the mining hardware industry, the market share cannot be ascertained. Thereby, it cannot provide a precise value for the cost analysis of Bitcoin mining.

How Much Electricity Does Bitcoin Mining Consume?

According to the University of Cambridge Bitcoin Electricity Consumption Index, researchers state that Bitcoin mining consumes approximately 84.31 terawatt-hours (tWh) annually. For comparison, this amount of electricity consumption is more than what the countries of Argentina or Finland consume annually.

The above information provides more clarity to the phrase when we speak of power-hungry machines that run 24/7, which assist in cracking complex algorithms to validate Bitcoin transactions. These hefty computer rigs are expensive to run, and thus the electricity expense that is derived from it is the most significant cost Bitcoin mining farms have to bear. So, is bitcoin mining profitable at average electricity costs?

Is it Profitable to Mine Bitcoin at the Average Electricity Cost?

Back in 2009 when cryptocurrency and Bitcoin were still a novelty, its mining operations were being run by a few Bitcoin miners on their personalized computers. Thus, the scope to earn a profit back then was much higher because there were practically no equipment costs, and the algorithms that needed to be solved were fairly easier than they are now. Additionally, although the electricity cost varied from country to country, it did not impact the profitability of Bitcoin mining to discourage them from the profession.

However, in recent years, application-specific integrated circuit (ASIC) chips have revolutionized cryptocurrency mining. ASICs are implemented in powerful crypto farms and mining rigs. But the cost of running these power-intensive units has decreased the level of profit. Furthermore, with the introduction of ASICs, the difficulty level of mining has heightened that further restraining the level of profit that can be achieved.

In regards to energy, the average cost of electricity nowadays is anywhere between $0.05/kWh to $0.13/kWh. Up until last year, the maximum cost of electricity fell at $0.03/kWh, and the possibility of mining operative costs increased over $0.04/kWh the following year.

To complete one Bitcoin transaction, 1702.85 kWh of electricity is consumed, which is enough energy to power the average US household for approximately 58.37 days.

Now since electricity cost is directly associated with the income that is earned by a miner, it can be confidently said that the higher the revenue of the mining operation, the more powerful machines can be supported. Hence, increasing the electricity consumption level.

Moreover, as mining happens more on an industrial level rather than a residential or personal level, the revenue earned from mining can now finance for more kWh than before, despite mining revenues being nowhere near as high as they once were. With Quantum Flash you can use AI to assist you make your trading quick and efficient.

Furthermore, statistics by the Bitcoin Energy Consumption Index show that the annual income of mining revenues totaled $14,119,197,457 (taking into consideration the fee and mining rewards). In comparison, the annual electricity cost incurred is $7,477,566,860 while assuming that there is no fluctuation in the electricity rates and that the cost is fixed at USD 0.05/kWh. These figures illustrate that the approximate ratio of electricity cost to the miner income is 52.96%.

Meanwhile, the Cambridge Bitcoin Electricity Consumption Index created a mathematical model assuming the price of electricity fixed at USD 0.05/kWh. This model illustrates that the profitability level of Bitcoin mining is at a threshold of 0.33 J/Gh as of August 2021. This has been the highest threshold Bitcoin has reached since the past year, mostly assisted by the increase in the price of the Bitcoin that leads to an increase in profitability. However, this is predicted to be rectified soon and its effects to be canceled out because of the increasing total hash rate.

The Answer

The above statistics present the profitability ratio of Bitcoin against electricity cost, but do we really find Bitcoin mining profitable at normal electricity cost?

Well, the answer to that question is yes, Bitcoin mining is profitable at normal electricity cost if the cost is at a reasonable level. Although, the energy to mine Bitcoin is significant, its increasing value aids to its profitability. Additionally, in the past 10 years, even though Bitcoin mining activity has increased by 10 billion, the ratio between the cost of mining and the transaction cost has remained the same.

However, in order to increase your mining efficiency, it is advised to negotiate terms with your energy provider on your electricity contracts to ensure that the cost is below $0.05/kWh. Alternatively, you can opt for Dogecoin and Litecoin mining, as they require a fractional amount of power compared to what Bitcoin mining demands.

Every digital currency is targeted by hackers who know the software well. Many arguments are happening related to the unethical activities performed by the people. However, there are Hi-Tech systems that could support digital money from hackers. In the past, people suffered scams, because of which their ideology of investing money into digital coins was reduced. The fear of hacking was quite visible on the faces of the people.

To reduce the hacking, Satoshi Nakamoto came up with a white plan. The scientist also wanted to launch the cryptocurrency but was quite aware that the scams in the digital coins were rising. There is no justification for unethical activities; however, the intelligent scientist designed blockchain technology. This technology is cable to reduce all the drawbacks people have faced for many years. The delay in the release of Bitcoin is because of the blockchain introduction. 

Today people happily invest the money with the satisfaction of no scams and frauds. It is globally essential for every person to know the risks attached to cryptocurrencies and how blockchain technology eliminates them.

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What Are The Few Common Strategies That Can Help A Person Know About The Crypto Scam?

Almost every year, 7000 people lose their Crypto because of an internet scam. In fact, from 2020 October to March 2021, around 80 million dollar crypto was scammed. It is a considerable amount that is why understanding common crypto scams are essential. Let us jump upon the top scams that attack innocent crypto owners.

The Demand Of Doing Crypto Online Payments

A credible person wants to recognize the scam involving cryptocurrency. They need to focus more on identifying the network. Bitcoin and other known altcoins are digital assets, and the expert says that the institution is going vital in addressing all types of security. A person must demand the other party to pay the coins through a secured exchange platform. If a person is not presentable with valid identification, it is better not to connect with him. 

In general, if any person is demanding you to pay the Bitcoins, there is a situation where they can scam you. Unlike any bank, Institute blockchain has the same protocols for identifying the user identity by providing the social security address and number. Although the blockchain issues a public ledger, the scammers are pretty efficient in openly making duplicate blocks. Therefore, it is better not to get fooled by such a trick to put your money at risk.

Digital Money And Games

Likely we have watched a new series available on Netflix that shows how sophisticated scientists do scams. It is out of imagination how the people are trying to influence the blockchain to corrupt people. Scammers are straightforward to trick newbies; however, they try to provide every type of information to new players at https://bitcoin-prime.app/. So if people want to hide away from the scams, they should not invest their money in any digital game.

The new investors look for different ways to buy Bitcoin or Crypto’s for free of cost, investing significant money into games. So when it is said that games are the other alternative to purchasing Bitcoin for free of cost, it is time advisable for every person to not focus more upon investing in games. Moreover, if the person wants to find out about all the alternators to buy Bitcoin, they can become miners.

Investment Schemes Offered By Cryptocurrencies

The newly developed cryptocurrencies constantly emphasize developing an investment scheme to avoid scams and fraud. The Crypto exchange takes over the opportunity of reducing fraud. Many individuals and companies are looking forward to finding the lifetime opportunity of 100% secure investments in Crypto with a higher return. The users must deposit the new coins in the digital wallet only. And the digital wallet is locked with a password, and a private key is approved.

So here are a few ways the scams take place in cryptocurrencies. First, a person should stay aware by reading the latest news and information printed by the exchange. Also, the coins must keep or stored in the Bitcoin wallet only.

Cryptos are the future of tomorrow and relatively a tremendous new digital asset that has made the entire creation digitalized. A popular cryptocurrency that is currently more in demand from 2009 is the bitcoin blockchain. The most wanted benefit of purchasing any cryptocurrency Bitcoin is the blockchain technology. Any cryptocurrency with a blockchain base does not require a central authority or a company owner to manage. Instead, the Crypto network is a meaningful digital peer-to-peer system that directly connects people with one.

There are many ways to explain the advantages of purchasing cryptocurrency, especially in 2021. Let’s admire some of the positive reviews and points about cryptocurrency.

The benefit of having a Crypto:

Easy Transactions Overcomes Anxiety

One thing that makes every person feel more eligible to use cryptocurrency is the fast transactions. The entire world is running behind quick services and efficient resources. However, the addition of convenience adds a Cherry to the cake. All the Crypto transactions are quick and straightforward with nominal cost and a secure private account. Every person using a smartphone can install the application to enjoy the Crypto wallet. A Crypto wallet manages cryptocurrencies such as Bitcoin, ethereum and so on.

 If the person buys a bitcoin, they can add it directly to the Bitcoin wallet. Today the advanced Technology has provided the convenience of converting cash to purchase Bitcoin from the ATM. Unlike the traditional ATMs, the development of Bitcoin ATMs has provided great flexibility to the users who are constantly involved in exchanging cash in return for Bitcoin. Most of the time, the conventional banks are not required to possess the Crypto. 

The user is self-independent to buy the Crypto from the ATM send it directly to their digital wallet. Therefore, the people behind in accepting the conventional financial institutes or systems should prefer cryptocurrency. The vital information related to Crypto is available on http://bitcoin-billionaire.com/.

Incredible Security Incline Faith

One thing that nobody compromises on is the security of the financial asset. The cryptocurrency’s incredible security is remarkable because it has a concept based upon Cryptography and responsible blockchain security. The decentralized cryptocurrency makes sure that every payment is secure and private. The hash rates primarily determine the Crypto security. The network of Bitcoin does not negotiate upon addressing the transaction with the computing powers.

It is widely necessary to secure the cryptocurrency with the highest hash rates. However, using the most reliable and authentic Crypto exchange is the most underrated statement by professional traders. This is because they understand the heedful responsibilities of exchange in securing the user from hacking and individual mistakes.

Less Settlement Time Saves Cost

While most people are investing their hardcore money into cryptocurrency and appreciating the price, they might be more fortunate to know about the fantastic ability of Crypto. Bitcoin or Ether transactions cost somewhere to 1% of the entire transaction. The cost deducted on every transaction is nothing compared to the amount utilized by the traditional banks to provide the services. Irrespective of the network and immense popularity, cryptocurrency’s grounded abilities make it easier to select without any doubt.

All people praise the payments done by Crypto as the settlement time is nearly two seconds or not more than a minute. However, the wire transfers settled at the banks cost significantly higher and more than four business days to settle the transaction.

Industrial Growth Equals to People Growth

The prosperous growths of the cryptocurrency industry have tightened the belts of the banking system. The cryptos are coming ahead in providing exceptional gains in the market growth. By far, the market has never seen the fastest growing industry in its lifetime. The Crypto’s are involved with most companies in leading the edge. The estimated market cap of bitcoin stood to be about $1.3 trillion in 2013, and by mid-2021 dramatically Rose to $1.4 trillion. So from the preceding points, you might have some fantastic insight into the benefits of cryptocurrency to the industries. 

Conventional banks must now understand their requirement and welcome the cryptocurrency with an open heart. The two institutions’ involvement can provide knowledge and a tremendous benefit to every individual.

Traditionally, the national government produces all the country’s currency under strict protocols. Then, the Federal Reserve or the central bank distributes the money to the banks in the registered ratio. The money present and physically accepted is known as Fiat currency, and gold and some more commodities do not decide the value of the Fiat currency. Instead, the general acceptance of the money has a pre-decided value. In other ways, the United States dollar and coins are the most helpful money because worldwide, people accept them and use them for generating a good economy.

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Money has different roles in an economy to incorporate. For instance, it is a medium of exchange. For every other currency that wants to become a medium exchange, it is necessary to become a world-dominating accepted currency. Undoubtedly, the dollar is the medium of exchange that is internationally recognized. On the other side, a new generation is coming forward with the new concept of using cryptocurrency as a new medium of exchange. The latest technique and the development of Bitcoin have increased the credibility of using a digital coin like this Auto-Bot.

According to the latest report and understanding, various super developed businesses accept Bitcoin for growth and fast transaction. They also added that Bitcoin is one of the most influencing parts of the finance industry.

What Makes Bitcoin Different From Fiat Currency?

Bitcoin is a Crypto or a token consumed by a person to purchase and sell goods and commodities. In this latest era, the use of cryptocurrency increased because of the fantastic facilities and a better sense of exchange. For example, on average, a transaction done through traditional banks takes almost 78 minutes for confirmation, whereas Bitcoin is consumed only a few seconds of the user.

Both cash and time in doing the transaction with conventional banks are costly. In addition to this, most people prefer using a stable cryptocurrency that can maintain time and money.

What Will Happen If Bitcoin Replaces USA Dollar?

The USA dollar is the international currency and the dominating physical money. Therefore, the US dollar is accepted worldwide; however, now the Federal Reserve is facing difficulty because of the involvement of Bitcoin. It has been assumed that if Bitcoin achieves its target of becoming the new exchange dollar will lose 2% of the purchasing power with every passing year. Therefore, the Federal Reserve must consider inflation to stabilize the price. For instance, if the inflation rate is slow, it is irrelevant for the economy and people. However, the value of Bitcoin has never been stable ever in history.

There are so many arguments related to comparing Fiat money and Bitcoin. Both two type of exchange has their value and fluctuations. Bitcoin has grown up over the period drama. The volatile cryptocurrency has been so many fluctuations that it can significantly threaten the stored money. However, on the opposite side, it has been acclaimed, and the volatile price will not affect the store money only in case of the prices are constantly Rising.

In the opposite situation, if the prices are falling, it is necessary to remind the people about the importance of stable value to keep the value of money firm. For example, Bitcoin price constantly decreases by 20%, similar to 2017. Therefore, cryptocurrency might damage cryptocurrency because of the volatility, and enormous odds may come forward in accepting the currency.

How Will Bitcoin Handle The Volatile Nature?

Bitcoin has gone through several episodes where the fall in the price was significant. The credibility of a cryptocurrency is damaged if the price fluctuates constantly. However, the 1.3 trillion dollar market cap can manage the volatile nature and boost the people not to miss any opportunity to invest the money. Furthermore, digital money is owned by the user who invests the money. The government cannot make the price decisions for the Seller. 

However, the main objective of virtual currency is to provide valuable services and good experiences in exchange. Therefore, the person can check for functional activities and exchange systems to progress knowledge.

Bitcoin mining has often been accused of exploiting the world’s energy resources for an unfair advantage. As various renowned tech-heads such as Elon Musk and Bill Gates express concerns regarding the power-hungry cryptocurrency, and countries such as China, Iran, and Thailand ban and restrict Bitcoin mining, there is a dire need to convert to greener mining cryptocurrencies.

After Bitcoin, Ethereum (which is the blockchain) and its cryptocurrency Ether is the largest and most popular cryptocurrency to dominate the market. With Bitcoin’s notoriety increasing due to its horrific energy consumption, Ethereum had no choice but to think quickly and adopt a more sustainable approach to sustain itself. Thus, in this blog, we will be analyzing whether Ethereum mining is greener than Bitcoin or not.

Energy Consumption of Bitcoin

To put things into perspective, if Bitcoin were a country, it would rank in the top 30 most power-consuming countries of the world. At 87.3 TWh annually, Bitcoin consumes more energy than many leading countries of the world such as Finland (which consumes 84.2 TWh annually) and Belgium (which consumes 82.05 TWh annually).

To validate one Bitcoin transaction, 1702.85 kWh of electricity is required, which would be sufficient in powering the average US house for about 58.37 days.

Thus, Bitcoin has had a devastating effect on the environment by devouring a hefty chunk of the world’s nonrenewable resources in its short existence. The carbon footprint a single Bitcoin transaction leaves behind is approximately 549.74 kg of CO2. Therefore if the trajectory prevails, Bitcoin alone has the potential to increase the earth’s core temperature by 2 degrees due to global warming.

Energy Consumption of Ethereum

The first aspect to be taken into consideration is that while Bitcoin is assumed to be running on an average of $0.05 kWh, Ethereum miners are paying an average of $0.10 kWh. The difference is due to Ethereum being run on Ethash. Ethash is an algorithm, which is resistant to application-specific integrated circuit (ASIC) chips, a technology that is prevalent in the Bitcoin network.

Compared to Bitcoin, if Ethereum was a country, it would be ranked as the 46th most power-consuming country in the world, devouring 63.39 TW/h per year. Thus, making Ethereum more power-hungry than Switzerland (which consumes 63.3 TWh annually) and Israel (which consumes 60.5 TWh annually).

Moreover, a single Ethereum transaction requires 144.7 kWh of electricity, which is equivalent to how much power is consumed by the average US household in 4.89 days. Additionally, the carbon footprint of a single transaction of Ethereum is 68.73 kg of CO2, which is equivalent to 152,329 VISA transactions.

Hence, it can be deduced by the statistics provided above that Ethereum mining is much greener than Bitcoin. However, we should further analyze the working of Ethereum to comprehend what it is doing differently than Bitcoin.

What Distinguishes Ethereum from Bitcoin

Observing the fate of Bitcoin, Ethereum had to think fast to find a greener solution to cryptocurrency. Otherwise, the crackdowns we are witnessing for Bitcoin mining will soon be conducted against Ethereum mining. Therefore, Ethereum founders are working on shifting Ethereum mining to a more energy-efficient solution.

By overhauling the Ethereum blockchain code, the newer version will be far more efficient than Bitcoin in regards to data storage, value distribution automation, and decision support. Officially named Ethereum 2.0, this upgraded version of Ethereum is not only efficient in terms of transactions but is cost-efficient as well, aiming to reduce the energy requirement by 99.95%.

How Will Ethereum Achieve 99.95% Energy Reduction?

While Bitcoin uses the Proof-of-Work (PoW) model, Ethereum will shift to the Proof-of-Stake (PoS) model, which will replace power-consuming mining with staking. The PoS model has been divided into 3 stages:

• The Beacon Chain
• The Merge
• To introduce Sharding

Out of these three, the first stage, The Beacon Chain, is already in full effect, which has allowed a conservative statistical analysis to take place.

Contrary to PoW, PoS does not require power-hungry computers to process transactions to earn newly mined cryptocurrency. The validators, who were formerly known as miners under PoW, will have to offer a stake as collateral. For solving the algorithm and processing the transaction, the stakers are rewarded with Ether, which is treated as a passive income.

Greener Results of Ethereum 2.0

According to an estimated statistical analysis performed by the Digiconomist, while Bitcoin consumed almost 14 Gigawatt of power at the beginning of 2021, Ethereum under PoW consumed almost 5.13 Gigawatt of power in the same timeline. Whereas, it is estimated that Ethereum under PoS would consume 0.00262 Gigawatt of Power.

Thus, it can be observed from the conservative estimations above that PoS is approximately 2000 times more energy and resource-efficient than PoW. Hence, Ethereum under this upgraded model will be able to decrease total energy consumption by 99.95%.

According to the Ethereum Foundation, if we translate this data into per transaction figures, we will receive 35 Wh under Ethereum 2.0’s PoS model, which is equivalent to 20 minutes of TV. On the other hand, Ethereum under PoW consumes energy that can be used to run an average US household for 2.8 days per transaction. PoS’s efficiency against Bitcoin is prominent and shows the game-changing potential.

Wrapping Up

From the above literature, it can be confidently said that Ethereum mining is far greener than Bitcoin mining. If the minds behind Ethereum manage to reduce power consumption by 99.95% with the emergence of the PoS model, then it will revolutionize the face of cryptocurrency and the finance industry for a more sustainable, greener, and eco-friendly future.

Do you want to enter the crypto world now but have no idea how to avoid risks? You know, it is impossible to avoid them at all but you can minimize losses. For this, you are recommended to use Safetrading.today crypto trading bots are the best choice for both beginners and experts. What is a crypto trading bot? It’s the software that can analyze everything that is going on in the cryptocurrency market and complete trades for you profitably.

You don’t need to rack the brains on when it is the best time for buying or selling BTC or other leading coins. Entrust all-important trading decisions to the best crypto trading bot.  Find out what steps you should make to get started.

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Top Crypto Trading Bots: The Principle of Work

More and more crypto traders enjoy benefits from using crypto trading bots. But there are still those who have a skeptical attitude toward bots because they don’t have a clear understanding of bots’ work. You can get it a try by making a few simple steps. It’s very important to choose a bot with a flawless reputation. For this, go to the Safetrading platform and check the rating of bots. You’ll learn more about trading bots and will be able to choose the best crypto trading bots.  Each of them appears on the list of the Safetrading – the place where each bot is checked carefully. You can be sure that they are approved. This means that you won’t be scammed. Don’t use an unknown trading app as it can transfer your money to its founder.

If you use a trusted Bitcoin trading bot, you should just provide the necessary information for it to open and close deals for you. It’s also possible to enable an auto trading regimen. It’s best to save time and effort. Most traders combine their crypto trading career with a permanent job. It can be a good additional source of income for you. You can choose the best trading bot on the Safetrading website and be sure that it will use reliable crypto trading signals. Crypto calls are provided by professional traders for your maximum convenience.

Best Bitcoin Trading Bots: Make the Most Out of Crypto Trading

Time management is just one of the advantages you will enjoy if you use a trading bot. Some traders use exchange platforms and Telegram crypto calls only. But it takes more time to use an exchange platform as the trader should monitor the market on his/her own.

An automatic bot is a right solution for those who want to trade round-the-clock. Devote your free time to family, work, hobbies while a trading robot will complete deals at the most convenient rate. It’s also the best tool for newbies who don’t want to lose money by using their credit/debit card on some unknown exchange sites where you can buy crypto for USD and pay an additional cost for the service. Instead of this, you can make the most out of effective trading with the help of a bot.