A study report by the researchers at the University of California San Diego shows that the people mining a cryptocurrency after it is listed on exchanges tend to have a higher income potential than those who trade the same cryptos. The researchers came to the conclusion that the income from mining is at a much lesser risk than earning from predictions and speculations. To arrive at this conclusion, they simulated a $1 investment in mining and trading simultaneously for a week. At the end of the week, the results depicted the gains from mind at 7% to 18% whereas the gains from trading wavered around -1% to 0.5%.
With the flourish of cryptocurrency market, there has been a significant rise in the number of budding crypto-geeks. From the understanding, that investing money in altcoins could prove to be hurtful, crypto-enthusiasts have opted for mining them. Hence, through the progressing digital currency market and the exponential growth of Bitcoin, the demand for computer rigs and hardware has jumped up high in Asia.
Miners all over the world are heading towards Hong Kong and Singapore where they can acquire readily assembled rigs which allow low-cost mining. Other such investors have come for buying motherboards, graphic cards (GPUs), display cards, memory card and power adapters that could help them mine much faster and efficiently.
This has led to Universities such as Barkeley’s SETI complaining about shortage of computer parts, as now they have to face competition from these miners for essential computer parts that were earlier easily available. Well, not everyone is happy with growth of digital currency mining.
Moreover, not just universities, but professional gamers have been affected with this surge as well. Earlier, you just needed to stroll down to the nearest market to buy a high end graphics card for your CPU. But with the boost of cryptocurrency, gamers world over are complaining about the shortage in supply of these GPUs. And this is driving the gamers crazy!
This shortage is happening because high-end graphic cards are the best tool for mining cryptocurrencies. It is a low investment with high returns as the GPU can be channeled to act as a normal processor as well. Through GPUs, it takes much lesser time to mine a crypto as compared to a CPU. With a few threads included from the CPU and the full force of a GPU, miners can work on their computers as well as keep the mining process running in the background. Furthermore, the prices of these graphic card equipments have gone as high as nearly double their original cost.
Hence, such hardware equipments are either out of stock, or come in mountainous prices.
Of course, it is not that simple to mine, and the value of these coins changes rapidly. But if these miners are able to discover even half the token of cryptos like Ethereum or Ripple, at today’s prices their mere investments bring in multiplex returns. With the trend taking over the world, and more miners coming up day by day, it looks difficult for people to locate hardware equipments any time soon in the market.
Sources : ArsTechnica, Investing.com
Supreme Court to hear cryptocurrency-related petitions against RBI in July