What is ASIC Mining and is it Worth Your Investment?

ASIC mining has remained the most efficient method of acquiring cryptocurrency for years. Is it worth investing in today? Short for Application-Specific Integrated Circuit, an ASIC miner - unlike other mining setups that repurpose CPUs, graphics cards or even disk storage - has been manufactured for the sole purpose of mining cryptocurrency. Offering the greatest leap in efficiency and simplicity since Canaan's first ASIC miner in 2013, many manufacturers have entered into the technological race of producing the most efficient ASIC rigs. Now, those who are serious about crypto-mining enjoy a wealth of choices when selecting their ASIC miner. The catch to ASIC units compared to their predecessors is that they can only mine a single crypto hash algorithm. This means that they will only be able to mine cryptocurrencies locked to that algorithm, which could be just one or several. Initially seen as an investment only available for those with extensive funds, ASIC rigs have become affordable and viable for smaller investors. With knowledge and interest in cryptocurrencies growing amongst even the tech-illiterate, more individuals are wondering whether ASIC mining is worth pursuing. What companies are involved with ASIC mining? ASIC rigs were first mass-produced in 2013, following the launch of Canaan's Avalon V1. This ASIC bitcoin miner could acquire upwards of $200 a day in Bitcoin. Although today, the ASIC landscape is significantly different. With explosions in profitability driven by increased valuations in cryptocurrencies, competition has erupted between manufacturers to produce the most efficient ASIC rigs. Whilst Canaan is still a significant player within the industry - even recently investing into their own mining farm in Kazakhstan - there are now many competitors driving advancements in ASIC miners. Bitmain, Whatsminer and Bitfury are just some of the now recognisable brands producing the most in-demand ASIC miners. However, it’s not just ASIC manufacturers which have turned into multi-billion dollar enterprises. Entire companies have been created to invest in ASIC mining farms and bring together thousands of rigs into a single location to mine cryptocurrencies 24/7 at a massive scale. These include the likes of Riot Blockchain, Marathon Patent Group and HIVE Blockchain - all of which have enjoyed substantial growth in recent years, capitalising on the significant increase in Bitcoin and Ethereum value. What are the pros and cons of ASIC mining? Now, from the above, you’d be forgiven for thinking ASIC mining was the only real consideration for any individual or group looking to start crypto-mining. However, the drawbacks of ASIC can range from mild to rather significant depending on where your operation is based and how much you’re able to invest in terms of funds, space and time. In very general terms, the more you can invest in an ASIC mining rig, the greater the profit you’ll be able to yield. While this has always been the case for crypto-mining, the principle has never been more true than now. As mining grows more popular, the time taken to validate transactions on the blockchain is ever-increasing - this serves to tackle uncontrollable inflation within the currency. Unsurprisingly, the ASIC miners with the greatest hash power to validate these blockchain transitions are the most expensive. A top of the market ASIC miner like Bitmain’s Antminer S19 PRO would set you back between $8,000 to $10,000, if not more. That is a tremendous investment for someone with no experience or background in mining to make. Plus, that doesn’t account for the sizable electricity costs required to keep it running. Naturally, you don’t have to go for one of these premium models. In fact, you don’t even have to buy new - especially with China’s recent ban on crypto-mining leading to swathes of units being auctioned off on second-hand markets on eBay and Amazon. These can be especially inviting if they’re sold alongside their required power supply, offering further savings. This means there is an abundance of ASIC mining hardware to match any budget. For a relatively modest $400, you could pick up Antminer S9. With just enough profitability to keep you in the red, this would be a perfect starter miner for someone looking to become more familiar with mining without losing money on the rig. However, such small profits can be quickly consumed by how much you have to pay for electricity. Even just a small increase in kilowatt per hour can turn a profitable rig into a lossmaker. This naturally means those with access to a surplus of renewable energy have a distinct advantage. As an inexpensive alternative, it will substantially reduce - or completely eliminate - the sizable electrical bill that comes with mining. With the limits of improved hash rates already being seen, it’s predicted that the next race for mining cryptocurrency will be who can achieve the greatest energy efficiency. For larger enterprises, establishing an ASIC farm in the desert driven by electricity from solar panels is a feasible proposition. For smaller startups and individuals, however, commercial access to that amount of renewable energy would be a more difficult acquisition. There is also the previously mentioned limitation on the currency that can be mined from each rig. While the simplicity of ASIC mining is unparalleled - plug in, log in, connect your wallet and away you go - the volatility of your chosen currency could make your profitable rig into a financial burden overnight. Currently, this is the case with Ethereum ASIC mining hardware. With the switch to Ethereum 2.0 and its ‘Proof of Stake’ concept, mining the currency will no longer be possible in a couple of years. This will lead many to reconsider investing in any costly Ethereum miners. While it may seem that ASIC mining is better suited to larger enterprises, it does offer a few advantages to individuals looking to earn some passive income. Given their compact size, you could easily house several ASIC units in a modest apartment. However, be warned. You will have to find an effective way to exhaust the heat, as even a single ASIC miner will begin to push the temperatures up in the room it’s working in. The more we explore the ups and downs of ASIC mining, the more difficult it becomes to give a reliable answer on whether it’s the right mining solution for you. Another popular alternative on the mining market presents itself in the form of GPU mining. In this article, we’ll help you to understand how GPUs are used in mining rigs and how you can mine effectively with them. However, with preparation and the right resources, ASIC mining still remains the most profitable form of crypto-mining.

Doug Turner
Doug Turner

30/07/2021

Is Yield Farming Profitable?

Yield farming has recently become a more popular way to earn cryptocurrency, but is it really possible to earn high farm yields from DeFi platforms? Part of the attraction of decentralized finance (DeFi) systems is that any individual can get involved in investing, lending and borrowing cryptocurrency. With no institutions or banks controlling the distribution of currencies, anyone with the knowledge and understanding of DeFi systems can earn significant interest and profits within various cryptocurrencies. This freedom to lend and borrow as part of decentralized exchanges, as well as the release of tokens by DeFi platforms onto the market in 2020, has led to a growth in the popularity of yield farming. Although some report to earn huge profits from this process, others have put large investments into various crypto assets, only to return significant losses. So what exactly is yield farming and how do you grow crypto profits from your investments? What is yield farming? Simply put, yield farming is a method through which investors can earn interest on their digital assets. By lending their own cryptocurrency back into DeFi protocols or platforms, investors provide liquidity to the market and are rewarded by earning interest back on their investment. Plus, DeFi platforms and protocols have also started to reward investors with their own governance ‘tokens’. These tokens are the equivalent of a shareholding in a traditional finance system and enable owners to debate, propose and vote on how the protocol is used and changed. One example is COMP tokens, which are released by the Ethereum-based protocol Compound and allow owners to have a say in how the protocol is run. Through a combination of these tokens and interest, yield farmers can start to earn a real profit from their cryptocurrency investments. How does yield farming work? In its simplest form, yield farming is the equivalent process of lending and borrowing in the traditional finance system, without any controls being placed on interest rates or loan applications by central banks or institutions. However, there are particular DeFi systems in place that enable efficient and effective decentralized exchanges. At the base of yield farming (and many other types of exchanges) are liquidity pools. This is where investors lock their tokens and assets into a pool via smart contracts. These assets can be traded and lent out to other users, sometimes using algorithms to determine the distribution and price, while yield farmers earn interest back on their investment. As well as having many different cryptocurrencies that are farmed for their yields, there are many different liquidity and platforms for each type of digital asset. This means there are lots of options for investors based on the types of digital assets they want to trade. What is DeFi Yield Protocol? One of the central policies of DeFi is that lending, borrowing and trading of digital assets should be open to everyone. The DeFi Yield Protocol (DYP) is quickly becoming a central part of the DeFi ecosystem thanks to its ability to open up crypto trading to a range of investors and lenders. By using a range of decentralized DYP tools, users can provide liquidity to the market by investing their tools into the platform to receive rewards in ethereum (ETH), binance (BNB) or DYP coin. The system automatically converts DYP into ETH or BNB without significantly affecting the price, enabling yield farms to earn significant profits from their investments. How do you farm DeFi tokens? As well as investing your own crypto assets into platforms or liquidity pools to earn interest, yield farmers can also earn DeFi tokens through this process. These tokens are a valuable asset in themselves and, in the case of pool tokens, can be earned and retraded to return even higher profits. These pool tokens are tradeable across lots of different pools and platforms such as Compound or Uniswap. As part of increasingly complex lending chains, yield farmers can earn pool tokens and then put them into the same or different pools or platforms in order to earn more tokens or interest. Although these strategies can be highly profitable, they can quickly become complicated and unwieldy if an investor doesn’t take a logical, well-informed approach. How to buy Yield Coin (YLD) As well as earning tokens through the investment of crypto assets, certain tokens are available to purchase individually, such as YLD tokens. With their own inherent value, YLD tokens are linked to investments in over 1000 different projects and companies. Established on the ethereum blockchain, they can be bought and traded through Yield.App to earn significant interest rates. This is a straightforward way to earn passive income from crypto assets without needing to actively trade currency or establish a chain of earning and trading tokens. How do you make money with DeFi? Many potential investors may wonder what yield farming strategies are the most profitable and effective. The short answer is, it’s dependent on how much asset and time investment you’re prepared to put into yield farming. Although some high-risk strategies promise significant returns, these often require an in-depth understanding of DeFi platforms, protocols and complex chains of investments to be most effective. If you’re an investor looking to earn some passive income without making too much investment, then you might consider putting some of your cryptocurrency into a trusted platform or liquidity pool and see how much it earns. Once you’ve established this base and gained confidence, you may look to invest elsewhere or even purchase tokens directly. As with any digital asset investment, you get out what you put into it. So ensure you have a thorough understanding of any protocol or platform before you invest and ensure any strategy you build matches the amount of currency and time you’re prepared to input into yield farming.is-yield-farming-profitable

Doug Turner
Doug Turner

15/07/2021

Everything You Need To Know About Crypto Arbitrage

Find out more about cryptocurrency arbitrage trading methods, as well as the potential rewards and barriers. Visit Kinesis, and you’ll see one Bitcoin priced for 35,904.20 USD. Visit another crypto exchange, and perhaps you’ll see a slight variation of a few cents or dollars. This is no mistake; it’s natural that different markets’ crypto evaluations would vary based on their liquidity and user base, as well as general trading volatility. Arbitrage traders capitalise on the value misalignment by buying cryptocurrency at the lower price and selling it for the higher. How arbitrage trading works Are you having a hard time wrapping your head around arbitrage? Real-world examples occur all the time. An antique dealer finds a chair for 10.00 USD at a garage sale and sells it for 90.00 USD at an auction. A vendor buys cherries from a rural supplier and charges double at an upscale city market. Arbitrage traders apply this same philosophy to buying and selling financial assets, ranging from Bitcoin to bonds. However, just because anyone can theoretically arbitrage almost all currencies or financial instruments doesn’t mean there are equal chances of success for all assets. Arbitrage and risk arbitrage are well-known trading techniques, particularly within traditional markets. Large financial institutions utilise advanced bots to automatically arbitrage stocks and similar securities, minimising opportunities for independent traders to compete. As a newer commodity that only recently captured large brokerages’ attention, Bitcoin and other decentralized finance present traders with increasing opportunities to retail arbitrage for profit. Why cryptocurrency is optimal for arbitrage trading There are 1,100+ crypto exchanges representing diverse levels of sophistication, liquidity, and trustworthiness. The continuous, dramatic fluctuations in crypto prices naturally lead to many of these markets reporting different values for the same currency. Geography also determines the local value of international commodities. For example, Bitcoin is worth substantially more in South Korean markets. During times of turmoil, Argentinian and Hong Kong exchanges traded Bitcoin at premium rates. Types of crypto arbitrage trading There are numerous approaches to arbitrage trading, though common themes and end goals remain the same. While traders will always pursue new ways to leverage market data for revenue, below are some of the most popular cryptocurrency arbitrage techniques. Simple arbitrage Also known as “cross-market arbitrage” and “spatial arbitrage,” this straightforward strategy involves buying a cryptocurrency on one exchange and simultaneously selling it on another. Let’s say Kinesis Exchange prices Litecoin at 130.57 USD, but another exchange says it’s worth 130.59 USD. You could buy $10,000 worth of Litecoin on Kinesis Exchange and sell the same amount elsewhere to make an immediate $200 profit. Triangular arbitrage As suggested by the name, this type of arbitrage trade involves three different currencies (or two pairs). The goal is to leverage divergences between how different markets appraise and convert other currencies. For example: An arbitrage trader buys one Bitcoin for 33,000 USD and then uses this Bitcoin to buy 100,000 Stellar Lumens—each worth 0.34 USD—profiting 1,000 USD.An arbitrage trader buys one Bitcoin for 33,000 USD but then sells it immediately for 420,000 ZAR (South African rands) due to regionally-based discrepancies. The resulting profit would be 956 USD. Convergent arbitrage This practice involves buying a cryptocurrency when a certain exchange or market undervalues it. The driving assumption is that the asking price will eventually self-correct, letting the trader later sell the currency for a higher value.Convergent arbitrage can also work in reverse. Let’s say you observe that a crypto exchange prices Bitcoin higher than others. You could short-sell based on the assumption it’s overvalued and will decline.Take note, not all trading platforms allow short-selling of cryptocurrencies. Arbitrage is considered a “low-risk” strategy The likelihood of losing equity while Bitcoin arbitrage trading is low but not absent. What’s more, the dramatic gains-and-losses typical of cryptocurrencies can increase both potential arbitrage risks and rewards. If you’re trading, keep an eye out for the following: Having inadequate time to react, for example if a currency pair is in a different time-zone to your own.A slippage in exchanges.Cryptocurrency exchange site outages.Market unpredictability. Other roadblocks to profit Transfer delays and upfront capital Arbitrage traders may grapple with problematic delays caused by transferring currencies between exchanges. An opportunity to profit may last mere seconds, making any delays costly. In response, arbitrage traders commonly upload multiple currencies to participating exchanges in advance. While this strategy eliminates delays, it requires greater upfront capital and potentially lessens adaptability. After all, it’s common for cryptocurrency exchanges to require you to keep newly invested funds within their platform for multiple days before they’re available for withdrawal. Trade fees and short-term capital gains Many platforms charge a fee for each interaction. The individual transactional costs and withdrawal fees may seem minor but can quickly add up to take a sizable chunk of your profits.Similarly, don’t forget to consider the tax for short-term capital gains. For example, the specific percentage you’ll need to pay in the US depends on your tax bracket and marital status. For instance, a single person who generates $10,000 in short-term profit will pay an estimated 12% in taxes. Time-consuming research and waiting We’ve all heard the saying, “time is money.” With cryptocurrency arbitrage, you risk working long hours for little pay-off. Traders must regularly track multiple exchanges and currencies, stay abreast of breaking news, wait with bated breath, and be prepared to seize the opportune moment in an instant.Traders can supplement some of this legwork with arbitrage trading bots, though this doesn’t entirely eliminate related duties. Hurdles to joining and interacting with different exchanges Most reputable exchanges won’t let you instantly join and trade. In fact, the approval process for an account can take days to complete. You may also have to contend with trading accounts shutting down due to glitches in systems. Popular YouTuber Graham Stephan recorded Why I Cancelled Robinhood, in which he details how the controversial exchange wrongly closed his account for two months. Despite multiple efforts to connect with customer service, he could not touch his money during this entire time. System glitches are not the only barrier you could face as a Bitcoin arbitrage trader. There will be lucrative arbitrage opportunities that you won’t be able to leverage based on citizenship. Above, we mentioned that South Korea tended to price Bitcoin higher than other domestic markets. However, you would have to be a verified citizen to participate in its cryptocurrency exchanges. Stay competitive with arbitrage bots You may have a natural eye for trades and spend hours pouring over crypto news and time series. Yet there’s simply no competing with the rapid computing power of arbitrage bots. Not all coin arbitrage bots are created equal, so it’s essential to research the various cryptocurrency arbitrage app developers. Steer clear of providers who promise unrealistic gains or lack a seasoned track record. These bots might make poor trades, or worse, outright steal your cryptocurrency as part of a scam. Additionally, don’t fall into the trap of “setting and forgetting” your arbitrage cryptocurrency bot. This mistake leaves you out of the loop about your own finances and robs you of valuable learning experiences. Plan for a drop in crypto arbitrage opportunities There’s no denying, cryptocurrency is increasingly becoming mainstream. Financial gurus that previously snubbed crypto now incorporate Bitcoin and Ethereum into their portfolios. Publicly traded companies like Tesla and Square invest heavily in crypto, and top credit cards like MasterCard and Visa embrace Bitcoin. You better believe hedge funds are taking notice. So what does this mean for retail traders employing arbitrage trade strategies? In Crypto Markets Are Where the Fun Is, Matt Levine notes, “Eventually crypto trading will be as competitive as traditional finance, and innovation in crypto markets will be as difficult.” Independent traders may be able to manually execute arbitrage trades in today’s markets. However, they should begin to investigate different arbitrage bots in order to keep up with an evolving crypto economy and statistical arbitrage (stat arb) techniques. Diversify your portfolio with Kinesis for ultimate success The last thing crypto investors should be is discouraged. Mainstream interest is a stepping stone to mainstream adoption, meaning today’s investments could pay off in both the near and distant future. Diversification is arguably the key commandment of smart money management. Balance your short-term-focused arbitrage trading with long-term investments in crypto and precious metals, as well as retirement accounts, like eg. your US employer’s 401K program. Kinesis makes it easy to buy, trade, and spend currencies and commodities with a hardware wallet and Visa card. Secure your digital assets, track collective growth, send money across the globe, and receive regular rewards for spending and storing your money with Kinesis.

Doug Turner
Doug Turner

09/07/2021

This Is Why Hedge Funds Are Moving Into Cryptos

Hedge funds are accelerating rapidly in the crypto space. We examine this growing market and its appeals for fund managers worldwide. With the crypto market doubling in value over the last year alone, it’s no surprise that fund managers around the world are taking notice of this growing financial revolution, despite the recent fluctuations. The appeal is clear: an alternative to the traditional banking system, providing new opportunities to market analysts, willing back new coins or startups with seemingly endless potential. However, as with any evolving market, there is a level of risk involved. Crypto is still a volatile product, as we’ve seen with the rapid price fluctuations in the first quarter of 2021 alone. This means that even experienced asset management firms are likely to be investing only a small portion of their fund money into this space. Still, with over $3.6tn assets under management globally, even a small percentage amounts to a healthy crypto investment market. And it’s only continuing to grow, with hedge funds looking to start investing more heavily in Ethereum, Dogecoin, Litecoin and other Bitcoin alternatives in 2021. So, who’s investing, and what’s the appeal for fund managers? Hedge funds investing in cryptocurrency Some of the world’s biggest and most well-known hedge funds are investing in the cryptocurrency market. In April, Brevan Howard — one of the largest funds in Europe — announced its intention to invest, putting 1.5% of its fund in digital assets as an initial step. The company has been involved in this space for a while, having recently acquired a 25% stake in One River Asset Management, an absolute-return strategy focused asset manager, strongly backed by the traditional financial system. One River Asset Management recently made one of the largest trades in the history of digital assets, in partnership with Coinbase, proving its long-term confidence in this asset class going forward. However, they’re not the only ones. This is part of a larger move by institutions, wealth managers and firms like Brevan Howard towards crypto assets, particularly currencies like bitcoin. Goldman Sachs has indicated that it’s looking to move into blockchain-related assets, and in April Morgan Stanley approved indirect bitcoin investments for a handful of its funds. With two of the world’s biggest investment banks declaring their intentions, it seems that cryptocurrency has definitely hit the mainstream. Early adopters are continuing to grow as well. Pantera Capital, which launched the first cryptocurrency hedge fund way back in 2013, noted that its bitcoin fund is up over 82,000% in the seven years since its launch. Performance has been improving steadily for this firm, and with its history of investing in early disruptors, it’s likely to keep going strong with its $4.3bn assets under management. Institutional investors may now be taking notice, but these specialised firms still have an important place in this rapidly expanding space. Increasing hedge funds for cryptocurrency In 2019 there were over 150 crypto hedge funds actively managing over one billion dollars in assets. By the third quarter of 2020, there were more than 800 active funds, and this number is steadily increasing, with constantly improving infrastructure encouraging more funds to invest. Around two-thirds of hedge funds managing crypto launched in 2018 and 2019, with their assets under management more than doubling during these years. In 2021, the appeal is as strong as ever, and early reports by Hedge Fund Research for this year’s overall hedge fund performance indicate one of the strongest year-to-date performances since the 1990s. Advancing in April for the seventh consecutive month, optimism remains high in this asset sphere, which will naturally trickle down into the blockchain fund market. There’s room for growth Of course, one of the most revolutionary aspects of crypto trading is its accessibility to individuals as well as to hedge funds and institutional investors. Trading cryptocurrencies like Bitcoin, Ethereum and digitalised physical gold and silver is possible through apps and exchanges tailored to multipurpose use. And with Kinesis, you can merge the best parts of crypto (its skyrocketing value and current financial focus, for example) with the historically popular gold and silver as a stable asset choice.

Doug Turner
Doug Turner

04/06/2021

Why did Bitcoin crash?

Why Bitcoin dropped below $30,000 and how is the Crypto Market Crash connected to China's Crypto ban? The crypto market landscape took a truly post-apocalyptic turn last week, as Bitcoin plummeted from over $45,000 to under $30,000 and Ethereum dropped from $3800 to under $2500 at their lowest point - all within one day. Crypto’s price plunged in response to Tesla’s Bitcoin payment suspension, coupled with China’s cryptocurrency ban, effective from Tuesday 18th of May. Within 24 hours, the overall market cap of cryptocurrency assets dropped by 25% (from slightly over $2 Trillion to under $1.5 Trillion), with both Etherereum and Bitcoin taking a hit of over 30%. The fallout of these events is still observable on the market charts, as despite hovering just below the $40,000 mark, Bitcoin is yet to make a run at its previous price level. But what are the exact reasons for cryptocurrency losing half of its credibility as an emerging universal form of payment? There are several components, which may have cumulatively resulted in Bitcoin’s fall from grace. The Causal Effect of Elon Musk Tweets on CryptocurrencyA Textbook Example of a Financial Bubble Will Bitcoin Recover?China Bans Bitcoin and Other CryptocurrenciesIs Bitcoin Sustainable?The Kinesis Reliable Solution The Causal Effect of Elon Musk Tweets on Cryptocurrency Elon Musk’s decision to suspend Bitcoin payments for Tesla electric vehicles turned out to serve as a preamble to the financial cataclysm. On the 12th of May, The Tesla CEO raised his environmental concerns, criticising Bitcoin’s dependence on fossil fuels, especially coal, for ‘mining’ (aka hashing) and transaction processes. His Twitter announcement of ceasing Bitcoin payments while awaiting crypto’s improvement on sustainability, resulted in an instant price drop, from almost $55,000 to roughly $50,000 within a day. The next stage of crypto liquidation started on Sunday the 16th when the world’s most famous crypto-influencer, Elon Musk, criticised Bitcoin’s mining giants in China, responsible for the majority of mining activities globally. As Elon pointed out, a handful of Chinese companies gained so much control over the crypto mining market, that it can no longer be considered decentralised. Shortly after his tweet, Bitcoin started falling down the charts. A Textbook Example of a Financial Bubble Despite the devastating effects of Elon’s suggestively equivocal social media communication, Bitcoin still seemed like a valuable asset to consider when building an investment portfolio. Traders, and especially crypto veterans were still hoping for the digital coin to regain its ground and start another bull run, as it did so splendidly at the beginning of the year. On Tuesday 18th of May 2021, China warned investors against speculative crypto trading. As Chinese officials declared cryptocurrency illegal, the market tension finally burst and investors started liquidating their assets en masse. As a result, Bitcoin’s value began cascading painfully, dragging the entire crypto market down the charts with its devastating tide. Within one week, both Bitcoin’s price and Crypto market cap returned to where they were standing at the beginning of January 2021. The Crypto Dip has wiped out all the price growth and developments of the past months, alongside crypto’s newfound reputation as a respectable asset. Will Bitcoin Recover? Cryptocurrency’s fate is impossible to determine precisely, with an equal share of market specialists forecasting drastically discordant scenarios. According to crypto enthusiasts, Bitcoin’s price is destined to eventually reach over $100,000 per coin and replace the US dollar as the reserve currency. With the same level of devotion, other specialists anticipate Bitcoin will soon disintegrate as an asset and eventually “come to Jesus”, as veteran analyst Peter Brandt warned at the beginning of May. Noteworthily, this seemingly unprecedented, once-per-decade drastic shift in value has already occurred repeatedly in the past (the last time being merely a few months ago, in January 2021) and will most likely happen again in the future. The horrific shock-wave that we can still observe rippling throughout the crypto market, is in fact a completely normal phenomenon, strictly associated with the cryptocurrency’s inherent attributes; the lack of intrinsic value, anonymity and decentralisation. China Bans Bitcoin and Other Cryptocurrencies These drawbacks ultimately led to China issuing new restrictions on Bitcoin, inclusive of registration, trading, and settlement services. On Wednesday 19th of May, Beijing banned banks and payment processing companies from providing services related to cryptocurrency transactions. In the official statement, released jointly from three Chinese financial organisations overseeing their respective industry segments; the National Internet Finance Association of China, the China Banking Association and the Payment and Clearing Association of China, we can read; “Recently, cryptocurrency prices have skyrocketed and plummeted, and speculative trading of cryptocurrency has rebounded, seriously infringing on the safety of people’s property and disrupting the normal economic and financial order. Virtual currency (...) has no monetary properties such as legal compensation and compulsion, is not a real currency, and should not and cannot be used as currency in the market.” China has been trying to ban crypto at least once every bull cycle since 2017, in order to restrain money laundering and drug trafficking practices. However, as Chinese citizens were still able to trade in currencies such as Bitcoin online, the local crypto market has since then vigorously rebounded. It might seem that the Chinese government’s attempts to curb the enthusiasm for crypto might now be more successful, as the newly reiterated ban has since then greatly expanded, and now covers a wider range of services. Contrary to what this ban could suggest, China has been the superpower behind crypto for years, solely responsible for over 75% of Bitcoin mining globally. This is one of the reasons why Elon has been so reluctant to fully embrace cryptocurrency as a form of payment. Especially, in light of the Chinese giants trying to forcibly claim control over Bitcoin mining processes, thus centralising it in a borderline unlicensed manner, his tweet might not be as puzzling as it seems. Is Bitcoin Sustainable? This week in finance has painstakingly exposed almost every single aspect of Bitcoin that is reflecting badly on its ambitions of taking over the world as a dominant form of money. Bitcoin has never been sustainable nor safe to invest in. In all its progressiveness, cryptocurrency might still be far too flawed to provide more than just a punting utility. Ultimately, crypto is famously volatile and is expected to continue fluctuating rapidly, even if appreciating over time. What the decade-old history of crypto has taught investors thus far, is that every drastic increase of value will eventually be followed by a nauseating market correction. The Kinesis Reliable Solution Yet, there is another solution emerging on the market, capable of catering efficiently to any investor looking for a reliable asset that could enrich their portfolio. An asset, which unlike cryptocurrency - is intrinsically based on the stable value of physical gold and silver. As in Kinesis’ KAU and KAG example, digitalised physical gold and silver are dependable, hold enduring value, and typically appreciate over time. At the same time, KAU and KAG are easily instantly transferable via the blockchain and instantly spendable via the Kinesis Visa card. Gold and silver are comparatively resilient to the galloping inflation and the ever-growing financial turmoil, while both fiat and crypto markets face economic uncertainty. It might be possible that the lack of any intrinsic value is the ultimate reason for Bitcoin falling from grace ad nauseam, as well as the Crypto Market Crash currently taking place.

Natalie Laz
Natalie Laz

27/05/2021

What is Yield Farming in DeFi?

What is yield farming, how did it start and how can you make this strategy work to your advantage? Find out more in our short guide. Decentralised finance (DeFi) is a hot topic within cryptocurrency at the moment. Similarly, yield farming is getting crypto enthusiasts and investors very excited. Although agile and complex strategies need to be developed to perform yield farming effectively, this method can return high profits if done correctly. What is yield farming? To understand yield farming, it helps to have a basic understanding of the principles and processes of DeFi. A set of cryptocurrency systems that started to develop in the late 2010s, DeFi is an open source financial system that uses a blockchain rather than a financial institution as its source of trust. Sitting outside of the control of companies and governments, DeFi is open to anyone who has the knowledge to access the protocols and build applications on the blockchain. It also has minimal central legislation, meaning users are free to invest and innovate in a way that isn’t possible in traditional financing. Yield farming is one result of DeFi’s regulatory freedom. Simply, it’s a process of lending out cryptocurrency via DeFi platforms such as Compound or Uniswap, locking up this crypto investment to earn rewards. Otherwise known as liquidity mining, ‘yield farmers’ are rewarded with interest on these investments through smart contracts or earn tokens for making a stake in these projects e.g. if you lend crypto on Compound, you’ll earn COMP tokens back. How did yield farming start? Compound is a platform based on the Ethereum protocol. In June 2020, it released its COMP governance tokens to its user base. This led to a higher demand for the token and helped Compound to reach the top ranking position in DeFi. As well as distributing their ERC-20 tokens via an algorithm, Compound provided incentives for lenders to lock their cryptocurrency into their platform by rewarding them with these tokens on top of any interest. The combination of the popularity of these tokens and these incentives lead to the beginning of a growth in yield farming. How does yield farming work? In a traditional financial system, banks or other organisations lend out money to individuals within regulatory control and on the basis of the perceived safety of the investment. Borrowers then pay the loan back with interest, meaning that the lenders are rewarded for their investment. Decentralised systems enable individuals to lend and borrow freely between themselves through the medium of DeFi platforms. This enables borrowers to get the cryptocurrency they need and individual lenders to earn high rewards on their investments rather than locking it away as an asset. As yield farming has grown, other platforms and protocols have started to develop systems where investors can earn rewards by lending and borrowing coins. This has led farmers to develop complex systems of staking and borrowing assets from different protocols and platforms or using liquidity pools. Many profitable strategies work by leveraging as much out of the fewest possible DeFi protocols. Successful yield farmers are agile and move their funds between protocols or swap their coins to more profitable ones as their strategies stop working. How are the returns calculated? The returns of yield farming investments are calculated annually via two main metrics, Annual Percentage Rate (APR) and Annual Percentage Yield (APY). APR looks at the overall percentage profit or loss that an investment has made, whereas APY can be used to track reinvestment of an investment return (known as compounding). The presence of smart contracts makes the reinvestment of profit or returns more common in yield farming, hence APY is a metric that is used more frequently. To be successful and profitable, yield farmers need to have a comprehensive understanding and a strong strategy that enables them to respond to changes in the cryptocurrency market. The most successful yield farmers have reported earning triple figure percentage rates of return on such strategies. What are the risks in yield farming? Although these DeFi processes can return high yield in finance terms, a solid understanding of DeFi systems, protocols and platforms is required in order to return the best percentage rates. This highly technical knowledge makes yield farming riskier than other types of staking or passive incomes, particularly when it comes to the use of smart contracts, so only the most advanced users will be able to access the highest return rates. The vulnerability of the blockchain systems and protocols can also be a risk to investors looking to farm yields. Due to their open source nature, even the bigger blockchain systems and protocols can be subject to vulnerabilities and bugs, posing a risk to anyone who locks their funds in a smart contract. Protocols are also completely permissionless and integrate with each other. Each stage in a protocol blockchain is broken down by individuals or a mining farm, meaning anyone, reputable or not, can work to break down each block. As a result, if one of the blocks doesn’t work as expected, then the whole ecosystem can be damaged. So even if you trust the protocol you’ve invested in, others that are linked to it might not be as reliable. In short, if you’re thinking of making a start in yield farming, it’s key that you perform due diligence and gain a thorough understanding of DeFi systems to ensure your investments will be safe and profitable.

Doug Turner
Doug Turner

24/05/2021

What Is GPU Mining?

In this article, we’ll help you to understand how GPUs are used in mining rigs and how you can mine effectively with them. Since the early 2000s, cryptocurrency miners have been adapting their software and hardware to meet the high power requirements needed to solve the complex mathematical problems required to process transactions securely. Graphic processing units (GPUs) were traditionally used to support the rendering of visual effects or graphics so a computer’s central processing unit (CPU) didn’t have to cope with processing the minute details of videos or games. Now, they are alternative hardware that is being more widely used in cryptocurrency mining rigs to break down the blocks in the chain. What does GPU mining mean? Processing blocks of approved transactions in cryptocurrency blockchains requires a high level of power consumption. To process the transactions and complete proof of work mining (PoW) at scale, cryptocurrency miners build specialist computers that use a combination of software, hardware and processors to solve complex mathematical problems and algorithms quickly. When cryptocurrencies were first introduced, the processing of the blockchain was done by computer CPUs. However, as more people have begun crypto mining and the process has become more difficult, extra processors needed to be used to mine cryptocurrencies quickly and effectively. Application-specific integrated circuits (ASICs) are the other main type of processor that are used for cryptocurrency mining. Built specifically for this purpose, they’re often considered to be the best processor option by miners. In contrast, GPU mining uses graphics cards or GPUs to verify cryptocurrency transactions on the blockchain. Originally designed to process visual information, GPUs and graphics cards can be repurposed to compute mathematical operations in parallel and were part of the first rigs that upgraded from those using CPUs. Why did GPU mining start? The growth of GPU mining began when Lazlo Hanyecz purchased two Papa John’s pizzas for 10,000 bitcoin in May 2010. This gave the cryptocurrency inherent value and led to growing popularity in bitcoin mining. In addition to this, the code that enabled bitcoin GPU mining was released to the public in October 2010. This, the relatively affordable cost of GPUs and graphic cards and the power of a GPU rig set up led to the growth in this mining technique. Plus, setting up a rig with a GPU took very little technical knowledge or huge computer power. A set up designed mainly for mining hobbyists, it wasn’t until the introduction of field-programmable gate arrays (FPGAs) and ASICs that rigs became powerful enough to turn crypto mining from a side hustle into an industry. What algorithms can you process with GPU? In order to solve the mathematical problems that secure cryptocurrency transactions, GPU systems use a hashing algorithm. This algorithm maps data of any size to a hash of a fixed size to help the computer solve the problem. The most common hashing algorithm that is used in GPU mining is SHA-256 which the computer takes to turn into an output, which is always a 256-bit number. Other algorithms that are used in GPU mining include: Scrypt: which runs on password-based key functions and has a block generation time of around 2.5 minutes. X11: the most energy-efficient algorithm, it uses 30% less wattage from the GPU and was designed to be ASIC resistant. Ethash: previously known as DaggerHashimoto, this was also developed to be ASIC resistant and is mostly used for Ethereum, Ethereum Classic and Expanse currencies. What does a GPU rig look like? Although traditional GPUs are powerful and were useful in the original crypto mining rigs, they were developed mainly to deal with visual processing rather than specific mining functions. Recently, businesses like NVIDIA have started to develop crypto GPU products that are built specifically for gaming and mining purposes rather than video processing. These new hardwares do make GPU rigs more powerful, however many miners using GPU systems work in shared pools to use their joint processing power to make their cryptocurrency mining as effective as possible. These pools can mine blocks more quickly and therefore earn more of the currency in a shorter time. In order to be effective, GPU rigs also need to use compatible mining softwares. Some of the most popular include: Claymore miner: designed to mine both Ethereum and Ethereum Elassic, it can mine other cryptocurrencies with similar algorithms without reducing the hash rate.WildRig Multi miner: this supports more than 30 different algorithms and can be used on Linux and Windows systems. KawPoW miner: this can support any type of mining pool which makes this software one of the most popular on the market. However, it isn’t very compatible with AMD GPU devices. By combining the GPU hardware with one of these softwares in a computer system, you can start to mine a range of different cryptocurrencies effectively. What cryptos can you mine with GPU? When choosing a cryptocurrency to mine with GPU, it’s important that you consider whether the cost of setting up and running the rig and establishing a blockchain architecture that supports PoW will be met by the block rewards you receive for your or your pool’s mining efforts. For example, the rewards for Bitcoin (BTC) GPU mining is an eighth of what it was just over ten years ago. If you’re thinking about what to mine, these coins are some of the most common for GPU miners. Bitcoin: as mentioned above, GPU bitcoin mining is less profitable than it was in 2009. Plus, bitcoin mining is bad for a GPU that isn't specifically engineered to deal with the high levels of processing power required. However, its derivative, Bitcoin Gold (BTG) has an architecture that makes it one of the most profitable coins for GPU mining. Grin: one of the easiest coins to mine via GPU, Grin is relatively new on the market and offers unlimited coins for miners. Plus, 60 GRIN is rewarded per block compared to 12.5 for BTG. Litecoin: thanks to its innovative Scrypt protocol, this coin can be mined without an ASIC. This also means that the network can provide quick transactions with low fees and is highly compatible with the GPU mining process. Whichever cryptocurrency you decide to mine, ensure that you’re reviewing its value regularly to ensure you get the best return on your GPU investment.

Doug Turner
Doug Turner

12/05/2021

How Many Bitcoins Are Left?

How many Bitcoins are in circulation already? How many Bitcoins are mined per day? Find out how crypto’s limited supply impacts its price. Bitcoin, the original cryptocurrency, has a hard-cap limit of 21 million, after which no more coins will ever enter the market. As of today, 30th April 2021, there are already over 18,695,225 Bitcoins in circulation, with only 2,304,775 still left to mine. Yet, this number keeps constantly evolving, as additional 900 coins get virtually unearthed every single day. With 89% of the entire supply already excavated by eager treasure diggers, it might be a good moment to contemplate how the finite quantity of Bitcoin reflects on its value as an asset. Is it worth investing in Bitcoin? The innate volatility of the crypto market throws one persistently reappearing boomerang of a question at investors: is it worth investing in cryptocurrency or is it just a bubble ready to burst at any minute? Ever since Bitcoin emerged as an exciting novelty in 2009 and ballooned for the first time in 2014, the general public has been shaking its head in sceptical unison. Indeed, the past decade has accustomed traders to Bitcoin’s tendency to soar across the market charts like a deflating balloon. With the crypto market alternating between spiking surges and flash crashes, it is important to also acknowledge the advantages that virtual currency brings to the table. Admittedly, Bitcoin has benefits that could potentially persuade traders to look past its wildly fluctuating price. Bitcoin is durable, divisible, and convenient to trade. Yet, its limited supply is probably one of the strongest arguments towards considering a long-term investment in crypto. Bitcoin’s hard-capped finite supply equals scarcity, which controversially renders the virtual currency a hard asset, according to some experts. What is a hard cap in crypto-lingo? What are hard assets? A hard cap is a non-bypassable limit, placed by a blockchain’s code, categorically determining the maximum amount a particular cryptocurrency can ever reach. After exhausting the hard-capped supply, it is impossible to create more of that crypto.As the name suggests, hard assets are tangible assets, hard to obtain or produce, equipped with a fundamental value which they can hold long-term, usually appreciating over time. Surprisingly, considering Bitcoin as a hard asset juxtaposes the cryptocurrency with another form of money, endowed with similar qualities - gold. However, it would be a false equivalence to examine the similarity of these two forms of capital. Bitcoin is ultimately bereft of any intrinsic value, while gold is historically recognised as a stable store of value. Yet, scarcity is the factor equipping them both with market-measurable significance. Does limited supply affect Bitcoin price? As Satoshi Nakamoto, the pseudonymous Bitcoin creator explains in his emails to the software engineer and developer Mike Hearn, “If Bitcoin remains a small niche, it'll be worth less per unit than existing currencies. If you imagine it being used for some fraction of world commerce, then there's only going to be 21 million coins for the whole world, so it would be worth much more per unit.” Today, it would be oxymoronic to consider Bitcoin a small niche. The reality seems to have greatly surpassed the careful expectations of Satoshi’s educated guess, as quite the opposite scenario is playing itself out on the financial markets. Bitcoin has become mainstream, paving the way for new decentralised, digital money architecture, as the currency consequently strengthens its reputability on the market. Every day another major company decides to get involved in crypto, accepting it as payment (as in the WeWork & Tesla examples) or even paying wages in cryptocurrencies, presenting an alternative to fiat standard as the designated form of money. How much will Bitcoin be worth in 2030? Although providing an accurate prognosis is incalculable, a single Bitcoin is currently expected to be worth between $100,000 - $200,000 by the end of the year, and $500,000 - $1,000,000 by 2030, according to some experts. Cryptocurrency has emerged as a new market class and a speculative addition to many investors’ portfolios. Although highly volatile, the overall predictions are progressively positive. In the accompaniment of its current media popularity uprising, Bitcoin’s value has continuously increased. Bitcoin price has famously grown tenfold just over the course of one year, seeing a wave of entirely new market participants joining the race and subsequently contributing to its bullish run. Is Bitcoin bad for the environment? The staggering level of Bitcoin accumulation can only be topped by the amount of energy required to generate this impressive heap of wealth. Bitcoin mining consumes enough power to easily place itself amongst the top 30 energy consumers worldwide - more than the entire country of Argentina. China’s mining empire, currently responsible for over 75% of world Bitcoin mining, is expected to hit 130 million metric tonnes of carbon emission by 2024. The upsurge of interest in crypto as a new market class is interconnected with its scarcity and the accelerating difficulty to obtain new coins. The looming vision of Bitcoin’s halving flared up its popularity amongst crypto miners. Every 210,000 blocks, the reward for mining gets cut in half, stimulating the mining race further. What is Bitcoin Halving? Halving ensures that new coins do not enter the market too rapidly, as mining requires more resources and energy when compared to the expected return. Simultaneously, the required increase in mining efforts puts pressure on Bitcoin’s price, raising its value and preventing inflation, as a result. When will all Bitcoins be mined out? Currently, a new block of Bitcoins appears every 10 minutes, in 6.25 increments, gradually reducing the already modest supply. Although 89% of all Bitcoins have been mined in just over a decade, the escalating difficulty slows the process down exponentially. Currently, it is anticipated that the process will take approximately a century, with the last Bitcoin mined in 2140. In accordance with the law of supply and demand, as the number of available coins decreases, the demand increases, and so - in theory - should the price. The creation of Bitcoin has not only ushered in a new age of decentralized money. By having a strict limit installed in its code protocol, it also introduced a far-seeing stipulation, which prospectively determined its economic significance for the future to come.

Natalie Laz
Natalie Laz

30/04/2021

What is Dogecoin?

What is the origin of the trendiest crypto of 2021? Find out how much is Dogecoin worth and why is Elon Musk taking Doge to the Moon. The Dogecoin, a tongue-in-cheek answer to Bitcoin, inspired by the Japanese Shiba Inu meme trend, was originally meant to be nothing more than a practical joke. A tribute to the online community, created by software engineers Billy Markus and Jackson Palmer in 2013, ended up instantly adopted by the Internet audience, serving as a tipping tool, accompanying Reddit post upvotes. Back then, Doge’s market worth was still close to zero. Yet, the crypto coin has quickly managed to generate a sentimental value, fundamental to its current popularity uprising. But is Shiba Inu’s memetic charm the only factor differentiating Dogecoin from other cryptocurrencies, or is there more pragmatic reasoning behind its fame and fortune? Is it worth investing in Dogecoin and will it maintain its position on the market as the Internet hype fades away? Why is Dogecoin Going Up? The fun & friendly Internet money frenzy started at the beginning of February, with a SatoshiStreetBets group Reddit campaign. The Internet movement, named after the mysterious Bitcoin creator, pseudonymous Satoshi Nakamoto, started as a virtual currency-focused answer to WallStreetBets. Soon after, Elon Musk followed their initiative with a series of frolicsome tweets. An online community of crypto-aficionados eagerly jumped on the short squeezing bandwagon, rapidly pumping Doge’s value up. Redditors required little encouragement to enthusiastically unite in the currency’s restoration process, rallying its price from US$0.0033 on 15th December 2020 to US$0.0126 on 28th January 2021. Dogecoin to The Moon Although it’s been merely two months since Dogecoin explosive resurgence, it already seems hard to imagine the crypto market without its frisky presence. Doge’s humble value in Q4 2020 was merely a preamble to its latter market-shaking rocket launch. Dogecoin’s media recognition reached its prime time on the 28th of January, when Tesla CEO, Elon Musk encapsulated his commendation in a series of applauding tweets, flying Doge to the Moon, in accordance to its official slogan. He has even suggested that the “people's crypto” as he called it, could become the official currency on Mars. The Internet devotedly followed the suggestion of the world-richest crypto-influencer. Doge’s worth ballooned by 800% within 24 hours after his laconic blessing, raising its market cap from $5 to $7 billion. Shortly after, Snopp Doge and Gene Simmons of Kiss, united in the public appraisal for the crypto. Puppy Love This is not the first time investors could observe Doge’s value prancing across the price charts, responding to the online community’s commands, as expected of a good doggo. The crypto had already famously jumped in early 2018, following the Doge meme revival on Reddit & 9gag social platforms. A very similar effect on the currency resulted from a viral TikTok challenge in July 2020, urging users to buy crypto, which casually spiked its value by almost 700%. Doge appears to have an added core component, which equips it with a quality that other cryptocurrencies are typically bereft of - an emotional value in place of an intrinsic one. Even over the last weekend of April 18th, when the vast majority of the crypto market flash crashed, Dogecoin managed to remain bullish and increased by 28%, against all odds. Will Dogecoin reach $1? Is Elon’s ambitious plan to make Dogecoin the future currency of Mars more than an ambiguous prank? The mock-named “Dogecoin CEO”, openly advocates for his favoured crypto. Yet, he never forgets to occasionally remind his public that this support stems from his natural inclination to all things hilarious, rather than financial advice. Nevertheless, this declaration didn’t stop him from buying Dogecoin for his son. Neither did it stop him from investing $1.5 billion in Bitcoin on behalf of Tesla, nor encouraging electric car buyers to pay with Bitcoin and gold, as the alternative to fiat. Is it achievable for Dogecoin to hold its position on the market, or is it destined to thrive just as fleetingly as the average internet fad? At the moment, the online community seems to be uniting in striving to pump Dogecoin’s worth, mutually encouraging buyers to hold, till its value reaches a dollar. What seemed unattainable at the end of 2020, now bears the hallmarks of natural currency progression. On February 8th, the market worth of the much joked-about coin reached its all-time best, going above $10 billion, making Dogecoin the 8th biggest cryptocurrency worldwide. Even though its value quickly fell from its $0.092 record-high, Doge now appears to be pawing his way back up the market charts again. Despite occasional plunges, it looks like Doge is slowly shedding off the internet curiosity trademark, with the potential to mature into a reasonable choice as an investment vehicle. Hilarious value aside, from the market’s perspective Dogecoin could be Bitcoin’s younger, prankstier sibling, just roller-coastering on a less impressive railway. It’s still far too early to firmly postulate Dogecoin’s future on the Moon (or Mars for that matter) but even if its $1 mission carries the sci-fi attributes, the general predictions are increasingly optimistic. How many Dogecoins are there? Jackson Palmer initially intended to keep about 100 billion Dogecoins in circulation, although eventually decided to change his own protocol. Based on the online community’s feedback, Jackson left the Crypto uncapped. With an unlimited supply, 126 billion Dogecoins have already been mined. As more tokens appear every second, the coin might eventually experience a rate of inflation, in which it holds a slight resemblance to fiat. For comparison, Bitcoin’s supply is capped at 21 Million. The estimated time to reach this limit is in a century from now, after which no new coins will enter the crypto market. Digital Currencies Become Mainstream There seems to be a close correlation between Elon’s jolly influencing, squeezing Redditors and the unprecedented, cumulative surge of interest in non-fiat currencies, dominating the financial firmament of Q1 2021. What exactly does this extreme polarisation indicate for the investors? All these movements appear to spurt out of a growing disenchantment with governmental institutes and byzantine banking practices. With the decentralised assemblage of small traders working in unison, a new financial inclination is brought into focus. The amassed online community is steadily building its momentum, dedicated to paving the way for a new monetary order. Their endeavours show the ripening necessity for a new financial architecture for future generations, this time governed solely by its consumers, and simultaneously - a chance to dethrone the hitherto unreachable capitalistic casino. At the same time, virtual currencies are currently increasing levels of technological mass adoption, with a growing interest from both private and institutional investors. Crypto is still relatively new on the financial market and only recently stepped into the media spotlight. With current rates comparably low in the overview of their exponential growth prospects, it might be the right time to consider investing in Dogecoin. However, one thing seems certain; the upcoming monetary architecture will be digital. *The information contained in this article is not intended as, and shall not be understood, or constructed as a recommendation or financial advice. You should consider seeking independent legal, financial or other advice to check how the information relates to your unique circumstances. Kinesis is not liable for any loss caused, whether due to negligence or otherwise arising from the use of, or reliance on, the information provided directly or indirectly, by use of this article and website.

Natalie Laz
Natalie Laz

20/04/2021

Top 5 Reasons to Invest in Crypto

Is cryptocurrency a good investment? Why invest in Bitcoin? What are the advantages of virtual assets and is it smart to trade crypto in 2021? Although cryptocurrency emerged only a decade ago, it has proven to be more than enough time to revolutionise the financial market as we know it. Traders were suddenly introduced to a refreshing and independent alternative to the outdated banking standard. Their focus shifted to the soaring cryptocurrency market, which has doubled in value within just one year and has been pushed to over $2 trillion at the beginning of April. Cryptocurrency is certainly providing investors with a fair share of excitement, luring them with the comparatively feasible promise of easy riches. At the same time, crypto leads inexperienced everymen into infamously calamitous losses. Yet, the ever-growing demand for Bitcoin or even the recent outburst of interest in Dogecoin seems to support the idea of virtual currency nesting its way into human consciousness, as the favoured model of future money. It is not difficult to list at least five appreciable reasons to invest in cryptocurrencies, so read on to learn: why is crypto valuable? 1. Possibility of High Returns With incredible volatility comes incredible profitability. Although Bitcoin has famously ballooned tenfold in just one year ($5K at the beginning of March 2020 and over $55K today), growing to the virtual celebrity ranks, it is clear that other cryptocurrencies have undergone a similar journey. The price of Ethereum has increased from $100 to just under $2000 in the same period and Dogecoin’s value has leapt over 1000% just in February 2021 alone. Such vigorous climbing provides not only a great punting utility but also may reward traders with incredible returns. Bitcoin, as well as Ethereum and Dogecoin, hold enough power to conceivably facilitate amassing an overnight fortune to their holders. As the money market tends to retrace itself, in line with the Elliott Wave fractal correction pattern, it is wise to keep in mind that the risk of losing money is equally high if investing inattentively. 2. Alternative to Fiat Even a cursory analysis of the latest history of crypto indicates that this is just the beginning of the market-altering bullish tendencies. It seems self-evident that crypto will continue to thrive over the coming years. The recent economic climate and subsequent market demand inject cryptocurrency with noteworthy advantages. Crypto’s magnetic appeal easily wins investors over, offering them an alternative to the traditional market solutions. Evolving independently from the central banking system, cryptocurrency seems to prosper in the current landscape of uncertainty, unrivalled by government-issued paper. 3. Control over your Money Although both fiat and cryptocurrencies are bereft of intrinsic value, the very factor of crypto’s decentralisation still caters more to independent investors, trying to escape out of the faltering banking system. In the current economy, fiat seems to be wuthering alongside the economic house of cards it’s built upon. With Bitcoin, Ripple, Ethereum and Dogecoin, the holder’s money belongs solely to their holder. There is no financial institution to rely on, that would limit or close access to the invested assets. There is no bank involved in the transactions, no associated fees and until recently they weren’t even taxed! Virtual currency belongs rightfully to an investor and is traceable on the blockchain, which ultimately means that there is a digital name engraved on every single coin a holder owns. In fact, the decentralisation of finances is rapidly formulating itself as the basis for a newly-emerging economical architecture, and crypto is designed to support it. 4. High Liquidity Another amazing benefit of virtual assets is their liquidity and subsequently - high spendability. Virtual currencies are a technological marvel, designed with efficiency in mind. A solution enabling straightforward organisation on trading platforms to easily support algorithm-based trading tactics, such as automated buying and selling at a specified price. Crypto can be purchased and spent effortlessly at any given moment, at a price close to its market rate. A dynamic asset, offering simplicity and allowing traders to react instantly, requiring neither substantial resources nor patience from traders. 5. Optimistic Prognosis With archaic fiat slowly losing its credibility, the astonishingly contemporaneous crypto appears to be a prevailing solution for future generations. Digital currencies bring qualities that emerged outside the banking system, as an independent alternative, unburdened by governmental affairs. Crypto is here to stay, crystallising its reputation a leap after leap. Although its price fluctuates rapidly and could potentially be an unnerving experience to track its movement, the majority of the long-term forecasts are extremely favourable. Investing in crypto and holding it for a few years is speculated to be a recipe for a generous profit. In response to that, the Kinesis Exchange ensures exceptionally rewarding conditions on the market, when compared to other exchange platforms, offering a fixed 0.22% execution fee and tight spreads on all cryptocurrency pairs. The Kinesis Solution With Kinesis, it is possible to seamlessly trade between precious metals and crypto pairs and keep all transactions in one place, whether the intention is to instantly spend, utilise the latest bull run, or invest for years to come. Additionally, every transaction within the Kinesis system rewards its users with a recurring monthly yield - an initiative exclusive to Kinesis. Perhaps the most considerable argument against investing in crypto is the lack of the intrinsic value providing a stable foundation. Virtual currency draws its volatile power from the market demand and is being conducted solely by its own popularity, as a consequence. An example of this is the correlation between Elon Musk’s frivolous tweets and corresponding surges in Bitcoin and Dogecoin market value. An ingenious solution can be brought by backing digital coins with historically stable assets, such as gold or silver bullion. This idea has laid the foundation for the Kinesis currencies, which merge the best properties of cryptocurrency with the stable value of the everlastingly appreciated precious metals. Kinesis digitalised gold (KAU) and digitalised silver (KAG) are designed to minimise volatility and bring stability for the Kinesis Monetary System participants.

Natalie Laz
Natalie Laz

12/04/2021