In this world where cryptocurrency is blooming and the paradigm of the transaction is predicted to shift from traditional to cryptocurrency, there is high time that we start considering this option. But before that, we have got to see what Bitcoin mining is and what the latest trends are!
Bitcoin mining is the process through which users update the ledger of Bitcoin transactions also known as the blockchain. Mining is the process which is done by the users in which they use an extremely powerful computer system such as ASIC to compete with other miners to make sure that they guess a specific number. Whoever guesses the number first gets the chance to update the transaction ledger and also wins the reward for latest minted Bitcoins (the current reward is 12.5 Bitcoins). As the trend has been spiking, the competition has grown tougher and you have got to have heavy equipment with cooling and storage facilities which portray that mining isn’t possible in casual settings aka home.
According to the Crypto Fund Manager, Mr. Brian Kelly has said that the upcoming supply cut will lead to rising in the price of Bitcoins in the following months. This statement was passed on through CNBC on 21st May.
He further talked to the Fast Money Program where he stated the halvening is due in 2020 which can lead to mining rewards cut in half. A large number of miners is coming onboard due to which there are high chances of increased demand leading to rising in prices. While stating about the four-year cycle that causes the halvening, Kelly said, “People generally have a rally and a year into it and a year out of it so; we are just trying to begin with the stage where supply cut is bullish.”
He has further recommended that investors should work on dedicating their 1% to 5% portfolio to the cryptocurrency while the current levels of the price are stuck around $9,000.
In the start of May, it was heard that investment firm, Fidelity was rolling out the Bitcoin trading for clients in the following weeks but until now, there is no further news.
On the other hand, if we look into the manufacturing industry, the leading sports brand; Nike has been exploring the ways to fit cryptocurrency in their business model. Various other analysts think that there are many other factors that are causing the sudden price surge of Bitcoins. According to the founder of Digital Currency Group, Mr. Barry Silbert, the bounce back of cryptocurrency might be linked to the trade war of China & USA.