More Computational Power Means More Profit with CryptocurrencyJanuary 22, 2019
It is well known that year 2018 was dismally awful for the cryptocurrency market. Several projects that were centered round Bitcoin collapsed. Several Altcoins fell off their cliffs. Despite all of these happenings, crypto enthusiasts and analysts are claiming that 2019 is going to be a great year for the crypto.
Thought leaders have expressed their views about the cryptocurrency sector moving forward. In a recent crypto event at the North American Bitcoin Conference in Miami, Shrem stated that lot of phoenixes arise from the ashes.
Shrem was optimistic when asked about the year 2018/2019 bear market. He, however, acknowledged that this is one of the worse bear markets ever. He even recalled about how investors invested in fiat money and lost their money to the mass Fear of Missing Out behavior.
Ethereum and EOS were explained by many as scientific experiments. There were questions about whether Bitcoin would exist in a year. Some are even wondering if there is enough security in the Bitcoin market and if Bitcoin will survive. There are frequent discussions and analyst opinion about for how long this bear market last.
Mining continues to be a big problem for most cryptocurrencies. Ethereum relies on POW to secure transactions and to add them to the distributed ledger of the blockchain. Therefore, winning requires more computational power. More computational power means more profit. Application Specific ICs (ASICs) are used to accelerate mining.
Ethereum is planning to substitute POW with POS. Rather than million processors working on the same transaction, the POS will pick one processor to take over the task. Thus, honesty is sustained, and when the validator is found to be cheating, they lose a lot. Thus spends on computational power and energy is reduced in turn preventing the dilution of the value of the currency.
POS will boost security because the location of every validator is known. In cases, when the validator breaks the rules, their account can be destroyed. Thus, Ethereum retains the power to destroy abusive validators.
A short-term consolidation was seen above $116.00. If buyers succeed to push the price in the $120.00 to 122.00 range, then a bullish momentum will set in.
The decline in the price of Ethereum has left the rest of the market tokens to follow the trend. This is not abnormal; however, it is interesting to see that XRP is ahead of Ethereum by market cap. We need to watch if there will be a renewal in price anytime soon for ETH.