December 9, 2022

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A Big Revolution in the Cryptocurrency Market: Now Cato (31) is Selling a Crypto Platform

A Big Revolution in the Cryptocurrency Market: Now Cato (31) is Selling a Crypto Platform

For those who don’t have much knowledge of cryptocurrencies, it can seem like a rather intangible thing.

But for many of those who invested early on, it was, to a greater or lesser degree, a goldmine.

– I earned at most 50-60,000 NOK per month from crypto mining. It’s not so much about the type of video card I use, says Kato Andersen, but how much computing power I can produce.

Rumor: Ethereum is the second largest cryptocurrency in the world, after Bitcoin. Photo: DADO RUVIC

The market controls one hundred percent profitability, and there are a lot of people who have traded with Ethereum. It raises prices.

Now, however, there are completely different times.

In the past year, there have been significant disruptions, and experts see a clear decline. More on that later.

This is Cryptography – Briefly Explained

Cryptocurrency like Bitcoin and Ethereum is a form of money that can be used for online trading.

Instead of using a bank to conduct transactions, the computing power of ordinary people around the world is used to execute and approve transactions.

Those who connect to the blockchain network and make computing power available so that transactions can be executed are often called “miners”.

If a “miner” contributes his computing power to solve very complex tasks that transactions require, he can earn a penny in cryptocurrency.

Approval of such online transactions is considered energy-intensive, because computer equipment is used at maximum capacity to solve complex processes.

source: The great Norwegian encyclopedia

– I paid to warm up

Last summer, the 31-year-old did like many others – he bought a powerful tech device with only one purpose, to search for crypto money on the Internet. Popularly called “mining”.

At a new price of NOK 330,000, the stand with 27 interconnected video cards stands in the main village of Årdal.

– It produces a lot of heat, so you can say that I get paid to heat the apartment. Brilliant, and so much better than a heat pump, Andersen says.

For him, his crypto career started in 2014, on a laptop while he was studying. He sold, and “tap like a dog” after that as the value skyrocketed the next time.

After a short trip in and out of the market in 2018, he went all the way to 2021.

The strong rise in the cryptocurrency market coupled with the falling electricity prices has made mining for your own hardware very profitable.

Expensive: Most Andersen Rack video cards are very powerful.  It is needed when solving complex data tasks.  Photo: private

Expensive: Most Andersen Rack video cards are very powerful. It is needed when solving complex data tasks. Photo: private

depreciation

Times are completely different now. Mining is energy-intensive, and high energy prices have had a strong impact on the earnings of many.

In today’s market, electricity is expensive in the south and cheap in the north. If I can’t sell my excavator, Andersen says, I’ll send it to northern Norway.

In addition to the price of energy, the global market has fallen over the past 12 months. In November of last year, the price of Ethereum was $4,800.

At the time of writing this report Price all the way down to $1300and many believe it will decline even further.

Various Cryptocurrencies: Since the arrival of Bitcoin in 2008, many different cryptocurrencies have appeared on the market.  Below is an explanation specifically for Bitcoin, Ethereum, Dogecoin, and Ripple.  Photo: DADO RUVIC

Various Cryptocurrencies: Since the arrival of Bitcoin in 2008, many different cryptocurrencies have appeared on the market. Below is an explanation specifically for Bitcoin, Ethereum, Dogecoin, and Ripple. Photo: DADO RUVIC

less attention

The numbers received by Finn.no TV 2 show a definitive change in interest in mining rigs.

Statistics showing the number of searches for the word “mining” show that the number has more than halved compared to several months last year.

Many made special requests in February and May 2021, When Ethereum Was In Strong Growth.

sales segment honesty

If you look at the number of ads containing the phrase “mining,” activity today is much lower than it was in the golden months last year.

Andersen thinks we’re facing a crash in excavator sales next time.

– Yes, I totally think so. Many have borrowed money to buy them, and I don’t think we will see a positive recovery in the market until January/February. Andersen says there is a lot of uncertainty right now.

Energy consumption equivalent to Finland

Crypto expert Torbjørn Bull Jensen at Arcane Crypto says there has been a significant shift, especially among those who work at home.

– Of course there is an escape between them and there are three reasons for that. As electricity prices are rising, bitcoin and other cryptocurrencies are dropping in value, and Ethereum can no longer be mined, Jenssen says.

Then he talks about the transformation that has been named “merge».

It happened on September 15, which means, among other things, that the cryptocurrency Ethereum will no longer use the computing power of miners to carry out transactions.

Draws a lot of power: The mining rig consists of several graphics cards.  Each card can draw several hundred watts.  Photo: private

Draws a lot of power: The mining rig consists of several graphics cards. Each card can draw several hundred watts. Photo: private

Among other things, this reduced global electricity use of cryptocurrency by 99 percent.

To put it in context – before the merger, Ethereum had a global Electricity consumption is equivalent to Finland. This is no longer the case.

Expert: Torbjørn Bull Jensen is a director at Arcane Crypto, which specializes, among other things, in cryptocurrency consulting.  Photo: Torstein Wold/TV 2

Expert: Torbjørn Bull Jensen is a director at Arcane Crypto, which specializes, among other things, in cryptocurrency consulting. Photo: Torstein Wold/TV 2

fundamental change

Now the currency will instead use what is called “proof of stake».

In plain language, this means that you are moving away from using the computing power of individuals, and instead using large cryptocurrency exchanges to carry out trades and transactions.

The goal is to facilitate technological changes, so that, among other things, it becomes possible to carry out more Ethereum transactions than is possible today.

– It’s a big question how this will happen, but change has happened and it’s working now. We won’t know if this causes changes that occur over time until several years have passed, Jensen says.

Lots of cryptocurrency

It is easy to think that cryptocurrency trading is only for those who are particularly interested and technically talented, but this is not the case.

One Survey from March of this year, conducted by EY and Arcane Researchexplains that up to 10 percent of adult Norwegians are now involved in cryptocurrency.

This means that as many as 420,000 Norwegians owned cryptocurrency in March 2022.

How could this NFT image cost 1.3 billion?

– This has become more widespread than many may realize, and it is clear that it remains.

But is the golden age of home miners over?

This has probably always been a niche that relatively few follow, but what is known is that you run into losses if you mine in southern Norway. You can still always have a machine if you want to heat the house, says Jensen.

Self-teaching: Everything Andersen knows about coding, he learned on his own.  At the bottom lies a keen interest in technology.  Photo: private

Self-teaching: Everything Andersen knows about coding, he learned on his own. At the bottom lies a keen interest in technology. Photo: private

change track

Home miner Andersen says the main reason he’s selling his rig isn’t The Merge.

– They announced this for five years, so I’m even more surprised that it actually happened. I understand very well that they are doing this, because there are huge amounts of money being transferred.

The full configuration of the reasons mentioned in this article is the reason to sell, but Andersen does not want to give up mining for this reason.

– No, I am now looking for other currencies to invest in. I often throw myself into new projects dealing with cryptocurrency. To me, this is a completely unique and wonderful technology that is here to stay, says Andersen.

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