Our Blog
CryptoCurrency mining news, tips and tutorials

Ok, so on my previous post, we analysed why mining is more profitable than purchasing cryptocurrency, and we focus predominantly on Bitcoin and Ethereum. Rightfully so as Bitcoin is the established main cryptocurrency while Ethereum is the highest rival followed only by a handful of distant competitors.
These 2 cryptocurrencies tend to "buddy up", literally, and I'll explain why.

CryptoCurrency Volatility Effects


When something new happens in the cryptocurrency world, Bitcoin takes a leap in price. Some recent examples, Japan approving BTC as their secondary national currency, several central banks and governments through IPOs looking for blockchain solutions (http://cyprus-mail.com/2016/09/09/big-banks-embracing-blockchain) etc. With the crypto-world being relatively fresh, lots of such events take place and in short frequency. So how does that affect the rest cryptocurrencies and specifically my personal favourite, Ethereum.

Ethereum


Ethereum, having its own global community with its own solutions widely spread, also tends to have such significant events that boost its price into new highs. However, let's see its effect from Bitcoin's leaps. Whenever Bitcoin takes a rise in price, Ether jumps almost twice in margin. You can verify this by historical data charts publicly available and you don't even need to go far. Just compare the last 3 months of price leaps (https://www.coingecko.com/en/price_charts/ethereum/usd/90_days)
This occurs because Ethereum is the main alternative currency other than the usd/gbp/eur that is being exchanged with bitcoin. Having the highest volume between the pair BTC/ETH and ETH/BTC trades, whatever happens to bitcoin, pulls ether even higher.

And that is one of the few reasons I favour Ethereum mining over any other cryptocurrency. Moving on from the above facts, how does price leaps affect cloud mining contracts. Do clients get less Ether because it's more expensive? Of course not. That would happen if you were buying $XXX worth of Ether per month. In mining though, your speed determines the amount of Ether you will generate per day/week/month regardless of its price. Nonetheless, when its price goes up, you will get even more Ether left from your mining as the maintenance/power cost fee will be less Ether cut from your earnings! Remember, maintenance/power cost fee is accounted for in USD, so the higher Ethereum is priced, less equivalent in USD gets paid and you keep more.

Jump into Mining now!

So jumping into mining now or in 2 months will not have any impact in your earnings whatsoever. However, be cautious, the crypto-world is a live market. Mining equipment tends to follow their target currency trends, thus also rising in price, especially for ASIC Equipment that is the most profitable. So mining contracts by any cloud provider also have to get a price pinch to match the market needs.

Closing up, with so many positive movements in the cryptoworld, even the main bank in my country just launched a blockchain ideas competition, and with more being announced daily, I would urge anyone considering to invest even the smallest amount in mining, to get in asap. Buy your equipment or Mining contracts and start ripping those earnings ;)