CRYPTO NEWS

A Bitcoin TOTAL Collapse might Happen, mostly due to Miners! Here’s why

  • Bitcoin crash: BTC prices continue to fall and dipped for the first time in 3 years below $20,000
  • The crypto market as a whole crashed by more than 7% in the past 24 hours alone
  • A fundamental flaw in Bitcoin’s infrastructure might lead Bitcoin to a total collapse, mostly due to Bitcoin miners

Bitcoin is risking a total collapse. We are indeed in a strong bear market, which brought Bitcoin prices from a high of $69,700 all the way to a current price of $19,100. There is a huge sell-off in the market as most investors already lost hopes of a recovery. The crypto market consists mainly of buyers, sellers, and miners. The latter approves transactions between buyers and sellers and makes a small fee. With fewer miners on the market, the crypto infrastructure becomes risky.

What is Crypto Mining?

Crypto mining entails employing high-end, energy-intensive equipment to solve complicated mathematical problems. It verifies transactions in the crypto industry. To put it another way, mining is the process of creating new tokens that are then sold on the market. Not all tokens, however, are mined when they are created or when transactions are confirmed. Proof of stake coins, for example, are generated or manufactured in a completely different way. Miners are also responsible for the security of the blockchain using crypto mining. This is in addition to creating new tokens and validating transactions. Because of the heavy capital required to acquire the equipment needed to mine at a faster rate and the cost of electricity, crypto fees become expensive.

How Does Crypto Mining Work?

In the case of Bitcoin, miners need to solve complex mathematical questions to achieve their aim. They spend enormous amounts to purchase complex computers to achieve their aims to carry this out. These computers also consume a higher degree of electricity needed for mining purposes than other computers. Miners would be required to get the right answer to the problem to be able to mine one token.

This mining process is called the Proof of Work. This will see them get 6.25 Bitcoin as a reward. Notably, rewards have decreased every four years since Bitcoin was developed.

Bitcoin Mining Became…Expensive!

Bitcoin miners receive their fees in…Bitcoins. In order to cash in their profits, they go to the open market and sell their Bitcoins for Dollars or Euros. The recent crypto market crash brought crypto prices down from a high of $69,700 all the way to a current price of $19,100. This resulted in a decrease of 72.5% in profits generated from mining. Because of the recent market crash, miners are now receiving fewer profits.

In fact, when miners receive their fees, they need to first cover their costs:

  • The initial cost paid to acquire their rigs (fixed)
  • Electricity bills (variable)

For a long time now, mining has been a lucrative business as the fees earned from mining Bitcoin were higher than the electricity bill, until recently. As Bitcoin dropped lower than $20,000, miners are starting to get annoyed from barely getting any profits.

A Twitter user even spoke about this:

Will Bitcoin Crash if there are no Miners anymore?

Eliminating the miners from the crypto infrastructure would hurt the crypto economy badly. As mentioned earlier, not only do miners approve transactions, but they also make sure the network is safe. Removing miners from the equation would be a total collapse of the crypto market. Other cryptocurrencies don’t require proof-of-work, such as Ripple’s XRP as they already exist. Ripple has no mining operations or miners. Instead, to improve reliability and speed, transactions are enabled by a “centralized” blockchain.

Millennials ‘Enthusiastic’ About Crypto As Majority Say Stock Market Investing Is Too Risky: New Study

Covered: Millenials Enthusiastic About Crypto Low confidence In Stock Market Millenials Enthusiastic About Crypto A firm allowing clients to fund retirement accounts with crypto is revealing how millennials view the stock and digital assets markets. A new study by Alto surveyed 1,200 millennials aged 25-40 with at least $2,500 in investable assets and $35,000 in household::Listen

Covered:

  • Millenials Enthusiastic About Crypto
  • Low confidence In Stock Market

Millenials Enthusiastic About Crypto

A firm allowing clients to fund retirement accounts with crypto is revealing how millennials view the stock and digital assets markets.

A new study by Alto surveyed 1,200 millennials aged 25-40 with at least $2,500 in investable assets and $35,000 in household income.

The research finds millennials are enthusiastic about virtual assets as 39% of them hold crypto. Seventy percent of millennials who own crypto and have an individual retirement account (IRA) also hold digital assets in their IRAs.

“When it comes to interest in digital assets, the vast majority of millennials either own crypto or are considering it. Almost 40% of millennials own crypto, which is greater than the percentage of millennials who own mutual funds and about equal to the number of millennials who own individual stocks.

Those who own cryptocurrency are likely to include it in their retirement portfolio. Over 70% of millennials who own crypto and an IRA, hold crypto in an IRA.”

Low confidence In Stock Market

The survey also reveals that millennials have low confidence in the stock market as 74% of those surveyed view equity investments as a gamble.

The data also shows that 76% of millennials worry a market collapse could wipe out their savings while 65% of them say they can’t count on the stock market to provide the annual returns it did in the past. Furthermore, 60% of them believe that it’s difficult to generate consistent gains in the stock market unless one is a professional investor.

“For millennials, the prevailing attitudes toward retirement are those of stress, fear and confusion. There is a clear concern about the riskiness of stock market investing. The main concerns for millennials revolve around the ‘gamble’ of investing, a lack of faith in the current market and the belief you need to be a professional investor to be successful…

Predictably, less than half (42%) of millennials are very open to investing in the stock market. Of those who have invested in the stock market, 71% feel that their investment portfolio could be better diversified.”

Recommended: Which Countries Are Using Crypto The Most?

*This article originally appeared in The Daily Hodl

The post Millennials ‘Enthusiastic’ About Crypto As Majority Say Stock Market Investing Is Too Risky: New Study appeared first on CryptosRus.

A Bitcoin TOTAL Collapse might Happen, mostly due to Miners! Here’s why

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