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Bitcoin [BTC]’s unprofitability forcing miners to find refuge with alternatives such as Zcash [ZEC]

Jibin M George

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Bitcoin [BTC]'s unprofitability forcing miners to find refuge with alternatives such as Zcash [ZEC]
Source: Pixabay

Since the highs of last year, the cryptocurrency market, in general, has bled out and is now struggling to reverse the significant downtrend. Bitcoin, the world’s largest cryptocurrency isn’t immune to it either and its losses have forced miners to quit Bitcoin mining activity. However, Zcash [ZEC] could emerge as a worthy mining alternative for many.

Since Bitcoin hit an all-time high of $19,783 in December, the cryptocurrency has seen a genuine tumble, especially after mid-2018. Presently, Bitcoin is down by over 80%, when compared to its all-time high price. This suggests that profit margins have also fallen for many miners and mining pools who count on high BTC prices to keep their business running.

Furthermore, high electricity and equipment costs associated with keeping the mine in business are cutting into these profits too, forcing many to quit mining Bitcoin. In fact, mining is such an expensive process that it currently surpasses the value of 1 BTC which is around $3,600. Each of these factors has forced over 100,000 miners to shut down shop because of unprofitability, according to a report last month.



In such an environment, alternatives such as Zcash have been welcomed. Miners have been reportedly fleeing to the Zcash scene because it offers a greater reward for each block mined, guaranteeing a greater profit margin. Zcash, a cryptocurrency that ensures a fixed supply of coins over time and launched in 2016, is presently two halving periods behind Bitcoin. Furthermore, what has attracted miners to Zcash is the exponential growth in hash rate the cryptocurrency has witnessed since the beginning of last year. According to some estimates, it is as high as 400% over the past year, contributing to its larger pay-offs and profitability for miners.

Another asset factors into the advantage Zcash may hold in 2019. Hit by several hacks and thefts, the cryptocurrency industry is on the lookout for a coin with very strict privacy options. Zcash could be one of them as it has features protecting confidentiality and privacy. This would be especially convenient for the rich, who would like to hold their assets in completely anonymous wallets with the utmost privacy. In a world of growing income disparity, it is more likely that the rich hold their riches in the form of coins such as Zcash which are privacy-enabled.





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Bitcoin

John McAfee says he will reveal Nakamoto’s identity, Coinbase expands to 11 countries, and more

Priya

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John McAfee says he will reveal Nakamoto's identity, Coinbase expands to 11 countries, and more
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Daily Crypto News – April 18

1. John McAfee on Satoshi Nakamoto: The Founder of McAfee Associates stated that he would narrow down on the identity of Satoshi Nakamoto until he reveals Satoshi himself, otherwise he would reveal his identity to the crypto community. He also spoke about how he knows about Satoshi, to read about it, click here!

2. Coinbase expands its services to more countries: The leading exchange platform announced that it expanding its services to 11 more countries, which includes India, South Korea, and New Zealand. People in these countries can avail services provided on Coinbase.com, Coinbase Pro and its app on iOS and Android.

To know more about the countries Coinbase has expanded to, click here!

3. Craig Wright says the crypto-community want to silence him: Craig Wright, the self-proclaimed Satoshi Nakamoto, stated that the majority of the community was against him as they “desire to silence” him because they see someone who would bring an end to scams and pumps and dumps.

He also spoke about the next steps he would be taking in terms of the legal action concerning his defamation case. To read about it, click here!



4. Binance “marks the birth of a new genesis block”: The largest cryptocurrency exchange in terms of trade volume announced the launch of its Decentralized Exchange, and also stated that the mainnet swap would take place on 23 April 2019.

To read more about Binance DEX, click here!





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