Bitcoin-Mining Machine Market 2020 Global Industry Size
Bitcoin-Mining Machine Market 2020 Global Industry Size
6 Best Bitcoin Mining Hardware ASICs Comparison In 2017
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How VBit Mining Works - Vbit Technologies
D-Central's Bitcoin Mining
Forbes miner's union plan, let you make it clear
https://preview.redd.it/51dwnbfy30451.png?width=900&format=png&auto=webp&s=79b57b192df4f4f11f0c7eb6ae849b169891f37c Learn from famous teachers: Dao organization comes from Cosmos, poca and other well-known open source projects as well as a number of Wall Street financial practitioners Grounded Technology: the core research direction of blockchain developers "cross chain" Looking at finance: building distributed financial infrastructure Layout of mining industry: "mining machine, mine field and mine pool", and strive to build a trinity of mining giant whale in 2020 In 2020, Forbes, the most concerned blockchain 4.0 project, is about to launch its global mining plan: Forbes has released its own ASIC chip bitcoin miner, and GFS hard disk miner is under development. At the same time, Forbes deployed mines in various regions of the world, including China, Southeast Asia, the United States, Australia, Russia and other places, to protect the "consensus". Forbes receives f2pool Based on the deployment of mining machines and mines in 2020, the Forbes plan will be launched with the strong support of internationally renowned mining pools. It is expected to build into the world's largest, most open and transparent comprehensive mine pool within three years. Miner and quarry Blockchain is revolutionary. It allows anyone to own and transfer assets through an open financial network without a trusted third party. There are now thousands of blockchain based assets, and the main way to produce encrypted assets is mining. "Mining", i.e. encrypted assets, represents the wealth anchored by the blockchain system, "mining" is the most direct means for all the network to obtain wealth. When the miner obtains the right to pack the blocks according to the consensus rules based on cryptography, and packages all the transactions correctly, the mining behavior can obtain the reward (token) given by the blockchain system for its honest record of the blocks, and when the blockchain system gains value promotion due to the growth and development of the participants, the token obtained by the miner will also be given higher and higher The secondary market value of. The miners produced the initial system pass. Therefore, mining industry has become the most upstream of blockchain industry. It can be said that mining industry is the foundation of the whole blockchain industry, which determines the 0 or 1 of a blockchain system. The mining equipment we use is the miner. https://preview.redd.it/jvfi6mfg40451.png?width=780&format=png&auto=webp&s=19dad192911d4a9addc1d285c7db5491c75904b0 The miner is essentially a computer. Personal computer is generally composed of CPU, GPU, memory, hard disk, motherboard and other devices. Mineral machinery is no exception in nature. Any mineral machinery is composed of motherboard + hard disk + mining chip. However, due to different mining machines for different algorithms of digital assets, such as GPU (or ASIC) for BTC, ETH mining, CPU for Monroe money mining, hard disk for IPFs, Bhd and other projects mining. Forbes mining machine in the main board, hard disk, mining chip innovation, Forbes uses dpoc consensus algorithm, belongs to the hard disk mining branch. Forbes with the strongest computing power is also in the field of the Internet of things. In foreign countries, everything is connected, hundreds of millions of intelligent devices are connected with each other, and they have super computing power and stability. Forbes mining machines all over the world will be very suitable for the deployment of Internet of things protocol, and become an important component of blockchain + Internet of things. The mine site is the offline site for the deployment and maintenance of mining machines. But for ordinary investors who want to enter the market, mining is difficult because the mining threshold is too high. Personal users want to mine, there is a huge deployment threshold and technical threshold. First of all, individuals can not get excellent electricity price, high temperature and high noise environment makes it impossible for users to mine at home. In addition, mining needs to be configured and deployed, and expensive mining machines need to be maintained regularly. Musk said that Tesla is not selling cars, but workshops. Standardization is necessary for an industry to achieve success. In the early miner Alliance Plan, Forbes launched its own BTC ASIC chip and bitcoin miner. At the same time, combined with major capitals, it created a global standardized Forbes mine, which was deployed and maintained in a unified way, greatly extending the service life of Forbes miner. According to the simulation test, Forbes I miner can operate stably for more than six years, which greatly reduces the mining cost and enables investors to obtain higher profits. Later, Forbes will log in to the Forbes hard disk miner in the ore pool after the main network goes online. Forbes miners Alliance Program Miner Alliance Plan: during a period of time when Forbes main network goes online, users can use collateral parallel chain assets (such as usdt, BTC, etc.) to lease computing power to deploy mining machines in global mines. In the lease term, the deposit is returned by the smart contract according to the number of days, and the mining revenue is obtained by the early participating nodes. Due to the cross chain implementation of Forbes, a large number of nodes need to be deployed in the early days to complete the information interaction between the relay chain and the parallel chain. And with the scale of ore pool access, the marginal cost of new mining machines will be lower and lower, and the revenue will grow steadily. Therefore, Forbes started the plan of Forbes miners' alliance, realized the rapid scale of the mining pool with market funds, and realized the stable growth of mining profits. Through the miner alliance, users can rent mining machines. In the form of "deposit contract" to ensure that each miner's fund is dedicated, and at the same time, for each miner, it is considered to realize the real deposit settlement on schedule through the blockchain intelligent contract. After the Forbes miner generates mining revenue, the user will get kusd stable currency. In the operation plan of Forbes Dao, all the miners who join the mine have the opportunity to convert part of the profits into GFS with unlimited potential. It is estimated that the early participants in the Forbes miner's program will have more than 1.6 times the deposit during the lease term of one year. It was asked where such gains came from. In fact, as a representative project of blockchain 4.0, the appreciation of GFS is inevitable. At present, the trading of GFS secondary market has increased by more than 10 times in a week. With the continuous extension of parallel chain and the continuous exploration of financial business, there is almost no doubt that the growth of GFS exceeds that of bitcoin in a year, even if it is halved. Forbes Dao mass produces Forbes super miner through the digital assets mortgaged by users. After the cost is removed, it covers more than 1.6 times of the revenue to nodes. Almost the secondary market value of GFS alone is far beyond. In addition, the BTC value dug out in the miner's Alliance plan will become a stable support for the miner's Alliance Plan, and 2020 is known as bitcoin minus half a year. Get BTC while digging GFS. To say the least, the price of GFS has fluctuated, and the BTC dug out is actually stable. Not to mention that the layout of Forbes gold stable currency, Forbes DEX and so on has been dragged down, and the user's income is cashed at any time. Forbes' miner plan is a three-way and multi win business initiative, which is the distributed power.
[Diplomacy] The Third Belt and Road Forum: The Caucasus
June 8th, 2021 Beijing, China The reality is that China does not have the military power that the United States and Russia bring to the world stage, nor do we have decades of Cold War influence that have carved out spheres of influence in the forms of economic unions, alliances, and buffer zones. However, we have the greatest weapons of all on our side: time, and an artificially-devalued currency that allows us to perform what Western economists refer to as "black magic." Our system has confounded the West and its brightest minds for years, and they will continue to scratch their heads as the honorable and powerful People's Republic exercises our soft economic power to carve out our own spheres of influence across the world. Debt is a loaded gun with a hair trigger, a time bomb with a broken clock. There is a reason moneylenders were so hated all throughout human history -- they held power over their debtors, real power. In a world that is becoming increasingly dominated by the multilateral alliance of NATO and the lone Dragon, we must build a multinational web of our own. We do not have natural allies as do the Americans and Europeans, and many around us do not trust us enough to sign onto a permanent military alliance. However, we can slowly bring the nations of the world to appreciate us through copious investments. And it is through these investments that we will make these countries dependent upon us for growth, so that they may one day repay our kindness with a favor of our own request. The greatest minds of China, including Paramount Leader Xi Jinping, Asian Infrastructure Investment Bank President Jin Liqun, and Silk Road Fund Chairwoman Jin Qi have determined that this is our path forward, and we will follow it to the glorious destiny that awaits us. The first Belt and Road Forum of 2021 will focus on a valuable reason, one with limitless potential for growth and profit, and an important battleground in the war for global influence: the Caucasus. Turkey, Georgia, and Azerbaijan have been isolated for this round of offers, focusing on infrastructure, energy, agriculture, and more.
Turkey: The Middle Corridor
A nation seeking to increase its own global standing, the Republic of Turkey recently announced the creation of the Middle Corridor Project, an investment program seeking to increase connectivity between Europe and Asia through Anatolia and the Caucasus. Conveniently enough, the People's Republic share the same goal. While Chinese-Turkish relations are not all they once were, it is our opinion that our nations still have much to gain through cooperation in this arena. Therefore, we bring the following offers to the Republic of Turkey: Working On the Railroad Following the imminent integration of the Baku-Tbilisi-Kars Railway with the Edirne-Kars High Speed Railway, the Turkish-Chinese trade network -- with a total volume of over $100 billion -- will become much faster and more efficient. The vast expansion of this capacity for movement of goods will continue to open up trade avenues between Turkey and China, allowing the Turks to benefit from Chinese investment and affordable manufacturing while Chinese companies will gain access to one of the largest and fastest-growing markets and industrial bases in Europe. To further accelerate and improve this process, China is willing to offer a loan of $2 billion dollars at a 2.4% yearly interest rate for the purpose of more quickly integrating the two rail networks with the rest of the trans-Asian railways. As Chinese companies have been proven to construct a mile of high speed rail for the ludicrously low price of $30 million, this offer should invigorate the process and greatly enhance the railway's capabilities should Turkey accept. The Nuclear Option A major goal of the Turkish Ministry of Energy and Natural Resources throughout the 2010s has been the construction of nuclear power plants in order to increase the nation's share of energy from that source. However, a number of projects have only ended in failure, having met various roadblocks from the safety issues that led to the abandonment of the Sinop Power Plant Project and the deterioration of relations with Russia that have halted the progress on the notable Akkuyu Power Plant Project, which was originally scheduled to be built, owned, and operated by Russian parent company Rosatom. The final nuclear plant scheduled in Turkey is the İğneada Power Plant, to be supported by American company Westinghouse Electric. The People's Republic believes that Turkey would be better off working with the expert Chinese engineers and technicians, rather than the Russians, whose vision of Turkey and willingness to help is clouded by political tension, and the Americans, whose vision of Turkey is little more than a puppet and bulwark against Islamic terrorism in the Middle East. Certainly, Turkey can do better than this. The People's Republic has recognized that Turkey's economy has incredible potential fueled by a hardworking people and a bounty of natural resources. Therefore, we offer the following proposal to the Republic of Turkey:
The China National Nuclear Corporation will take on the project of building, owning, and operating the Akkuyu Nuclear Power Plant in place of Rosatom, replacing the four VVER-1200/509 reactors with four Hualong-1 reactors for a total production of 4,680 MW as opposed to the original 4,456 MW offered by Rosatom. We will offer the same deal as Rosatom, with an added bonus: Chinese investors will provide 95% of financing for the project (which had an estimated cost of $20 billion USD, now likely down to around $15 since the concrete foundations are already under construction as well as the ability of Chinese corporations to provide lower prices) and up to 49% of shares will be available later to sell to other investors. Furthermore, the Turkish Electricity Trade and Contract Corporation is guaranteed the purchase of 75% (up from 70%) of power from the first two reactors constructed, and 30% from the second two units. Since the cost of operation will be lower and the reactors will be more cost-efficient, electricity produced will be sold at a price of $11 per kilowatt hour, down from $12.35 as per the agreement with Rosatom.
The China National Nuclear Corporation will take on the İğneada Power Plant Project in place of Westinghouse Electric Company, which has not yet begun construction. The same deal offered as part of the Akkuyu replacement deal will be offered.
Georgia: On My Mind
Georgia, despite the relative prosperity in Tbilisi and other major cities, is still very much a developing country. It is heavily reliant on agriculture in many regions, and subsistence farming remains quite common throughout rural parts of the nation. The People's Republic's analysis of the country has determined that in order for it to accelerate its growth and drastically increase its standard of living, it must break the economic stranglehold that is subsistence farming, and Chinese corporations are more than willing to assist in this task. In 2019, Maya Tskitishvili, the Georgian Minister of Infrastructure and Regional Development commented that the Belt and Road Initiative would serve an essential function in growing the Georgian economy. As Georgia was one of the first nations to express interest in the initiative back in 2015, we find it fit to repay this faith in kind. Fixing Farms As stated, reforming agriculture through the end of subsistence farming is key to unlocking Georgia's industrial and economic potential. To this end, the Beijing Hosen Investment Management Group, along with a number of smaller Chinese agricultural investment firms, are willing to invest a total of $40 million into purchasing farms of 200 acres or less, or farms that have a projected yearly revenue of $50,000 or less, in order to consolidate them into large farms. These farms will employ at least 80% of their workers as Georgian nationals, while Chinese workers may be immigrated into the country to pick up the remaining jobs that will be created -- a notion that Georgia has previously explored with South African, Armenian, and Arabian nationals. Agriculture is generally associated with economies of scale, meaning that larger farms are more productive and more cost-efficient, so neighboring farms that can be combined into singular large enterprises will have a higher priority for purchase and investment. Furthermore, for larger-scale, Georgian-owned agricultural projects, the People's Republic is willing to offer various loans to Georgian companies. A total of $250 million will be made available at a flat yearly interest rate of 3% for the lease of Chinese-manufactured farming equipment from WeiFang Guanghui Agriculture Mechanism, Shandong Yingsheng Machinery Company, and the Qingdao Iaoshan Tractor Factory. The governments and cooperations of China and Georgia will cooperate to ensure that Georgian farmers who sell their farms will be able to find jobs in the newly-consolidated agricultural conglomerates to ease fears of unemployment. Furthermore, our economists (as well as Georgian economists) estimate that the jobs created by the elimination of subsistence farming will more than compensate for those lost during the transition. Bit by Boring Bit Interestingly, a growing career path in the nation of Georgia is full-time Bitcoin mining, as well as other forms of cryptocurrency. It is becoming quite common for young Georgians to take advantage of powerful Soviet-era electricity grids and the abundance of electricity in the region to mine vast quantities of cryptocurrency, making Georgia one of the leading countries in the crypto market. We believe that we can use this to our advantage. Chinese investment banks, notably the Agricultural Bank of China, will purchase a number of cryptomines and put them to work for the People's Republic, subsidizing part of the electricity cost in exchange for a portion of the profits and a foot in the door of the vast Caucasian energy industry, which will be developed more later.
Azerbaijan: The Middle Child
At the Second International Belt and Road Forum in 2019, Azerbaijani President Ilham Aliyev indicated his country's express interest in taking part of the project to expand its infrastructure and trade opportunities. With the increasing importance of the BTK railway, we see it fit to secure our interests in the Azerbaijani economy so that both our countries may profit. We wish to extend an offer of a loan of $8 billion with an interest rate of 3.2% to Azerbaijan to be used in expanding the Baku International Sea Trade Port, which currently handles 15 million tons of cargo, to handle 25 million tons of cargo by 2028. We would also like to explore the possibility of increased Chinese presence in the Caspian through investments in Caspian Sea natural gas, and the China Petroleum & Chemical Corporation is willing to invest $2.4 billion for the construction of two natural gas drilling facilities in the Bahar offshore oil and gas field in the southern Caspian. These natural gas facilities will employ at least 80% of its labor force as Azerbaijani workers, and up to 49% of shares in the facilities will be made available for sale to non-Chinese investors. There are an estimated 25×109 m3 of natural gas in the Bahar fields alone, and the fields currently produce around 130 billion m3, making them a valuable resource that should yield consistent production and profit well into the future.
The Fourth Belt and Road Forum
The People's Republic is open for business. In the wake of the COVID-19 outbreak that scarred many economies around the world, we want our fellow nations to know that China is willing and able to invest in them to ensure a better future for both our peoples. Currently, China is targeting the Middle East for the next round of investments, but the People's Republic promises that any nation which requests loans will be considered.
How to earn Bitcoin at the lowest cost? RHY cloud mining is one of the best ways
Since the new year, the global situation and favorable conditions have continued. This has also been followed by the currency circle. The currency price has continued to rise, once again hitting the US $ 10,000 mark, which is a cumulative increase of nearly 220% from last year's low of US $ 3,416. At present, Bitcoin's circulating market value exceeds 1.15 trillion U.S. dollars, and the 24-hour trading volume exceeds 65 billion, which has far exceeded the highest trading volume during the bull market in 2017. In June of this year, the output was halved. Under this halving market, although it is still unclear, investors are more optimistic about the trend of the market currency price. There are currently two types of mainstream BTC methods: buying coins and mining, of course, two Each method has its own advantages and disadvantages. So which way can I get Bitcoin at the lowest cost? Many people will say that they are buying coins, but the shortcomings of buying coins are also very obvious. Generally, investors will be disgusted with the loss, resulting in unwillingness to buy in the downturn. Therefore, this requires investors to be able to tolerate short-term currency prices, even in the Buy currency even if the price of the currency drops. But humans are not machines and cannot control and avoid emotions that affect investment behavior. Just like people who buy real estate in China tend to chase after rising prices, they are reluctant to buy when prices fall. There is also a short-sightedness. The long-term is made short-term, and it is sold as soon as it rises. Many investors always make the long-term short-term. When it comes to rising prices, it is easy to feel that you have already made a profit, and you want to sell it, or you want to sell it and wait for the decline before buying it back. Most of these results are due to small losses and short-term long-term markets, so you buy coins. Not very suitable for most ordinary people without professional knowledge. https://preview.redd.it/hit8n06g0nm41.jpg?width=415&format=pjpg&auto=webp&s=dde1434baf30cceedf547f07f79907054a87a9ee Mining, especially cloud computing mining, is the method suitable for most ordinary investors. Mining is an excellent choice. In order for the BTC network to operate safely, an average of 12.5 BTC will be generated every 10 minutes as a reward to miners. As a miner, as long as the mined BTC can cover the cost of the mining investment and have sufficient profits, then there is a reason to continue mining BTC. Under this incentive mechanism, the average cost of a BTC mined by many miners is lower than the market price. In popular terms, it can get the ex-factory price of BTC. And mining is also considered to be better than buying coins directly. In addition to cost advantages, investment mining has the following advantages: From the logic of coin storage, mining is inherently long-term and mandatory. Once the mining is started, the depreciation and electricity charges of the miner at this moment are used to deposit coins at a fixed investment, and the cycle is relatively long. One investment usually takes one to two years, which is in line with the logic of BTC long-term investment. And compared to buying coins directly, miners are much less sensitive to the cost of mining, and are less susceptible to the effects of short-term currency price fluctuations, which reduces the irrational chase and kills from the side, which ultimately leads to trapping.
Whether a bear market is a bull market, cost recovery is profit
Even in the case of long-term stable or even low currency prices, as long as the mining machine is operating normally, once the cost is recovered, it will enter the stage of almost zero-cost coin storage. Compared with the fixed investment, the market must rise to be profitable. Advantage.
Difficulties in mining: site leasing, mining machine purchase, unstable electricity, high electricity bills
First of all, it is necessary to lease a suitable site before mining, because the noise of the mining machine operation is extremely large, and the operation of residential areas is prone to cause complaints. Secondly, the computing power of a single mining machine has very little block reward. It needs to form a scale to obtain a large number of block rewards. A large number of mining machines require a large amount of capital investment. The voltage in residential areas is extremely unstable, with large power consumption in summer and winter, and large-scale power outages often occur. Once power outages, the damage to machinery and equipment will be huge, and all mining machine power operations will be damaged. In addition, the electricity bill in residential areas is high, and low-cost operation basically does not exist. Without professional knowledge, it is impossible to master the maintenance and supervision of the mining machine. In the later operation of the mining machine, professional technical maintenance personnel are required to carry out daily maintenance tasks such as supervision, maintenance and upgrade of the mining machine, so the owner of the mining machine needs to have a lot of professional knowledge. . Because of the above problems, most people who do not have the funds or do not know the professional knowledge are still out of the mining investment, and those who enter the market have even become "leeks". Therefore, choosing a good cloud computing mining platform can make you a BTC investor and owner, such as https://en.rhy.com/
RHY cloud mining-low-cost mining way to easily mine Bitcoin
Bitcoin mining has gradually reduced the amount of mining, the cloud mining of the entire network has been increasing, and the difficulty of mining is also getting higher and higher. At the same time, the competition in the mining industry is becoming increasingly fierce, and the rapid rise in mining costs has caused more miners to start mining with cloud computing power. RHY cloud mining, as the head platform in the field of cloud computing power mining, has been around the pain points of the traditional mining industry. In the face of ordinary investors and small white mining users, it has launched cloud computing power mining, computing power leasing and mining. The leasing activities of the machine allow the majority of investors to enjoy the feast of the benefits of cloud computing mining during this bitcoin halving period.
Canada-based cryptocurrency mining firm Great North Data has filed for bankruptcy, owing millions to creditors and government agencies. https://preview.redd.it/gcw15zxp3z241.png?width=999&format=png&auto=webp&s=cc17317ab5db88acf3f9b77c3bad2978db258f92 Cryptocurrency mining and AI processing data company Great North Data has filed for bankruptcy due to insolvency, the Canadian Broadcasting Corporation (CBC) reported on 4 December. According to the report, Great North Data filed its bankruptcy documents late last month, saying that it had only CA$4.6 million (around $3.5 million USD) in assets, while owing creditors CA$13.2 million ($10 million USD). The company ran crypto mining centers in Labrador City and Happy Valley-Goose Bay, and had received support from federal and provincial governments. The company reportedly owes CA$313,718 ($238,080) to the Business Investment Corporation of the provincial Newfoundland and Labrador government. The company originally secured a CA$420,000 loan from the province for building, land, machinery and equipment. Listed as an unsecured creditor, the Atlantic Canada Opportunities Agency (ACOA) is owed CA$281,675. The ACOA, which aims to create opportunities for economic growth in the region, had originally funded the company with CA$500,000 back in 2015, which were to be repaid under an agreement. The federal agency has said in a statement that officials “are in contact with the client and are closely following all developments” involving the company. In addition, the company has also left a power bill of CA$316,477, owed to the Newfoundland and Labrador Hydro, which is listed as an unsecured creditor. At the time of writing, Great North Data’s website has remained offline. The crypto mining industry has become increasingly challenging, with a number of mining companies closing their doors in the past year. In October, a mining operation in the U.S., BCause Mining, was ordered to shut down, liquidate its assets, and lay off its workers, after it filed for bankruptcy earlier this year. Others, on the other hand, are still entering the crypto mining industry. Last month, data center developer Whinstone US announced that it will be starting construction on the “world’s largest Bitcoin Mining facility” in Rockdale, Texas. The plan is for the project to start at 300 megawatts, and expand to 1 gigawatt by the end of next year.
Canada-based cryptocurrency mining firm Great North Data has filed for bankruptcy, owing millions to creditors and government agencies. https://preview.redd.it/sjdqp3pabz241.png?width=999&format=png&auto=webp&s=9ce9b7eb03734b57975baee6c2a0c6b3b91660d7 Cryptocurrency mining and AI processing data company Great North Data has filed for bankruptcy due to insolvency, the Canadian Broadcasting Corporation (CBC) reported on 4 December. According to the report, Great North Data filed its bankruptcy documents late last month, saying that it had only CA$4.6 million (around $3.5 million USD) in assets, while owing creditors CA$13.2 million ($10 million USD). The company ran crypto mining centers in Labrador City and Happy Valley-Goose Bay, and had received support from federal and provincial governments. The company reportedly owes CA$313,718 ($238,080) to the Business Investment Corporation of the provincial Newfoundland and Labrador government. The company originally secured a CA$420,000 loan from the province for building, land, machinery and equipment. Listed as an unsecured creditor, the Atlantic Canada Opportunities Agency (ACOA) is owed CA$281,675. The ACOA, which aims to create opportunities for economic growth in the region, had originally funded the company with CA$500,000 back in 2015, which were to be repaid under an agreement. The federal agency has said in a statement that officials “are in contact with the client and are closely following all developments” involving the company. In addition, the company has also left a power bill of CA$316,477, owed to the Newfoundland and Labrador Hydro, which is listed as an unsecured creditor. At the time of writing, Great North Data’s website has remained offline. The crypto mining industry has become increasingly challenging, with a number of mining companies closing their doors in the past year. In October, a mining operation in the U.S., BCause Mining, was ordered to shut down, liquidate its assets, and lay off its workers, after it filed for bankruptcy earlier this year. Others, on the other hand, are still entering the crypto mining industry. Last month, data center developer Whinstone US announced that it will be starting construction on the “world’s largest Bitcoin Mining facility” in Rockdale, Texas. The plan is for the project to start at 300 megawatts, and expand to 1 gigawatt by the end of next year. Learn more: Zeus Mining This news comes from: https://chainbulletin.com/canadian-bitcoin-mining-firm-files-for-bankruptcy/
The era of digital economy has come, and digital assets will become the core assets
So far, the economic development of human society can be divided into three stages: agricultural economic era, industrial economic era, and digital economic era. Agricultural economic times, from the early scattered hunting and gathering, to large-scale domestication of plants and animals, the four seasons, day and night, basically rely on natural law changes for production activities. With the “big explosion of production”, the era of industrial economy is coming. From sucrose production in the Caribbean to cotton planting and processing in India, the demand for power in production has promoted the development of industry and mining. In the early days of this era, personal power can basically solve the problem of capital. With the large-scale development of industry and mining industry, personal capital is difficult to meet people’s investment needs, so the system of central bank and commercial bank is born. https://preview.redd.it/6kr4f7zg21x31.png?width=720&format=png&auto=webp&s=653d4d547ac534737005a0652cf2e2a63c6549a5 With the rapid development of Internet, people gradually enter the era of digital economy. The digital economy has greatly reduced the social transaction cost, improved the efficiency of resource optimization and the added value of products, enterprises and industries, and promoted the rapid development of social productivity, making the human economic society enter a new stage of development. With the development of blockchain technology, artificial intelligence and 5G technology, the era of digital economy 2.0 is about to start, which will bring a huge change, and even reconstruct the economic structure and governance model, giving birth to a new economic form. In the era of digital economy 2.0, it is program (code) driven, which makes the default rate of the whole system can be reduced to almost zero, and can not exit at will. For example, the point-to-point transaction and recording mechanism of blockchain technology will establish an Internet system of credit in the field of digital economy, and then build a value network. Digital assets will be truly mapped to the real world, specifically measured by token. https://preview.redd.it/bwnddg8k21x31.png?width=561&format=png&auto=webp&s=5e62072c4cc8661412bfc7c5c752b7a6e626d37e Digital assets are the new form of assets under the digital economy. In the industrial economic model, fixed assets such as plant, machinery and equipment and labor force are the most important two variables. Therefore, in the era of digital economy, digital assets will become the core of digital economy. In the digital world, economic exchange activities gradually develop from the exchange between people to the exchange between people and machines, and between machines. Machines will have their own accounts, their own certificates of assets, and transactions between machines must be carried out point-to-point and automatically. Moreover, the phenomenon of digital economic activities is more frequent, and the accounting time unit has reached the level of “second”, while the traditional financial system’s accounting time is “day”. All these changes provide infinite possibilities for the development of digital economy. According to CoinmarKetcap data, the total market value of digital assets increased from about $85 billion in June 2017 to more than $81 billion in January 2018, with a growth rate of 852.94%! https://preview.redd.it/p2d7ykol21x31.png?width=580&format=png&auto=webp&s=d6f004bbde7f370a6b44d8e2ebce25163fbabe09 With the rapid development of digital economy, the exchange, which is responsible for the circulation of digital assets, has become an important role in the era of digital economy. It is very important for the stable development of digital economy to guarantee the safe and efficient circulation of digital assets. BitCentury digital asset trading platform brings together the prophets of bitcoin developers from all over the world, and has a strong technology research and development team and operation team. Its core technology of high-frequency trading, with the ultimate processing speed of 1 million single / second, is a leading level in the industry. As an encrypted asset trading platform to spread the value of blockchain, BitCentury hopes that people around the world can participate in the investment of digital assets fairly, and make digital assets become a new way of asset allocation. With the continuous development of the digital economy, BitCentury will give full play to its own technical advantages and operational strength, provide a fair, transparent and secure trading environment for global digital asset investors, let the value of digital asset link, and let the blockchain technology application into daily life.
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Catch the full episode: https://www.wealthformula.com/podcast/172-ask-buck/ Buck: Welcome back to the show everyone we have a number of questions today on Ask Buck so I am gonna get with it right away the first question is from Beau Cannington. He’s a member of Investor Club and Wealth Formula Network. Here's his question. Beau Cannington: How much of a negative impact do you think that a rising interest rate environment will have on our commercial real estate investments and specifically the syndication investments with Western Wealth Capital? Thank you very much. Buck: So Beau good question especially on paper right makes a lot of sense that potentially rising rates could be problematic for multifamily real estate or really for any kind of real estate. But let's go back to basics first because I think it's important, a lot of people don't have a good enough understanding of this in the first place which is when does leverage help you in the first place when does it help to borrow money from the bank? Well leverage only really helps you if you're borrowing at a rate that is less than your effective cap rate and what I mean by effective cap rate is you know you're gonna constantly drive net operating income into a property if you're increasing value of the property if you're in a value-add situation. That's what we do in the Western Wealth Capital opportunities that you're talking about. But that rate at which you borrow has to constantly and always be above your effective cap rate otherwise it's gonna hurt you. All leverage does is to simply amplify the directionality of your profit or losses. So just like it makes you profit more if your effective cap rate is greater than your interest rate, if that you know that income drops to a point where now your cap rate is actually below the interest rate, it's gonna magnify your losses. So that's at a very basic level hopefully that makes sense if it doesn't real issen to it because it's critically important and for some reason you know a lot of people don't pay attention to that especially people who are just getting into real estate for the first time it's really important. Now let's talk about the idea of interest rates themselves I mean the one that most people are familiar with is the one that's on the news all the time. It's a Fed Funds rate you know people call benchmark rate whatever. It's the one that's set by the Federal Reserve and the way I think about the Fed Funds rate is that it's an indicator for whether or not the economy is healthy it's it's sort of a barometer when the rates are getting hiked the economy is in pretty good shape and the Fed is trying to prevent it from getting too hot and to you know potentially prevent inflation. On the other side when the you know Fed lowers rates, like it just did by the way, it signals some level of concern about the economy it you know suggests that maybe there's some deflationary activity going and suggest that there's some recessionary activity going on. You know ultimately the Fed rate is you know it's set by the Fed and it's it's a tool of monetary stimulus to try to control inflation and ultimately mitigate recessionary cycles so it's a way for the Fed to control the economy you know it's one of the ways that they try to control the economy one of the monetary pulse. Now the Fed Funds rate does not equate to mortgage rates I I hear a lot of people you know like on social media and stuff talking about had funds rate goes the perfect time for me to go shopper shop a loan or something like that and well you should know a little bit more than that if you're in the business of real estate and taking loans out but you know I mean I'm seeing like syndicators do that. The Fed fund rate really affects short-term and variable adjusted rates really it's really an indication of what's going on right now in this economy in the very short term. And mortgage rates of course then are far more complex mortgage rates reflect sort of a longer-term health of the economy and they're probably there's a lot that goes into them but probably the thing that you need to watch the most is the ten-year Treasury which is much more a reflection of you know the long-term rates what the market thinks to the markets gonna be in the future right so if there is a belief that there is you know inflation on the horizon you probably see those rates start to rise. Inflation tends to rise when the economy's you know hot so anyway now again so what you should be looking at is the 10-year Treasury now I'm giving you a little bit of background rather than just answering Beau’s question initially but the good news right now is that the Fed fund rate was actually cut so it's actually not going up anyway so we don't need to worry about that right now but what we we also had a big dip in the tenured Treasury so our mortgage rates are very favorable right now as well now that's interesting because that happened before the Fed cut rates you know we recently closed on something within our Investor Club and got really good rates and that was before the that was because the treasury took a dive before it took a dive right before you know the hope this whole thing in the last week or so couple weeks where there's actually a Fed rate. But let's move back again and you know to Beau’s question. Say mortgage rates were going up what would that mean and how would that affect our investments? Now presumably that would be a suggestion that the 10-year Treasury as we talked about was going up which would also be suggestive of an inflationary environment. Now here's where it's really helpful to be invested in real estate like multifamily real estate which is of course my sweet spot. Inflation also means that we raise rents more right so in other words as rates go up so to our rent. So the ten-year Treasury is reflective of inflation when we and so the rates go up but so do rents proportionally and so theoretically we should be in good shape and not worry about it too much because it's really just an adjustment for inflation if you think about it that way. Bottom line is for me personally I don't worry too much about rates when it comes to our Wealth Formula accredited investor opportunities that we're doing and one of the reasons for that is we are incredibly aggressive about value add. So we're constantly in decompression mode as well and we're you know we're locked in to some good rates here too so. Now in addition if you look at the speed at which you know some of these companies work like Western Wealth Capitals the one you mentioned and they're forcing equity into these assets like you know incredibly fast so you're in a dynamic mode of decompressing cap rates in real time and that effectively again de-leverages the asset altogether. So if you found that confusing, listen to it again. But bottom line is if you take nothing else away from this I would tell you that interest rates in general mortgage rates will reflect inflation. So if inflation is going up rates are gonna go up and vice versa and so they tend to cancel each other out don't worry about it that's what I would tell you. If anything rates going down might be potentially more of a concern simply because that's a much more of an indication of an economy that's not healthy. Now we're doing you know BC classed multifamily I still think we're positioned very well so again I don't worry about it too much. Okay let's see next question from Chris Odegard another Investor Club guy and also another Wealth Formula Network guy so Chris here you go. Chris Odegard: Hey Buck. Chris Odegard here in Kent Washington. My question relates to asset classes. If I remember correctly from Tom Wheelwright he talks about four asset classes: paper or commodities, real assets, real estate real assets aka real estate and businesses. So I believe that you know if I'm a shareholder in coca-cola that's paper but I'm also a private shareholder in a number of small start-up businesses so because my ownership of private shares and small businesses constitute a paper asset or a business asset? And if that's still a paper asset you know what makes you a have what makes you have an investment in business since most of the time you know if you're an owner or part owner of a small non publicly traded business it's usually their share so anyway I'm kind of struggling with the distinction between paper and a business asset classification so appreciate your help on that. Thanks. Buck: So Chris I thinkx first of all let's back up and just say you know the reality is that these are you know these are just definitions right and there's a gray area between them and we can use them to guide us a little bit as we appropriate things into the right quote-unquote basket but you know we shouldn't get hung up on them too much but let's go back and review the definitions right so what are what are paper assets. So well let's talk about what real assets are so real assets are physical assets right and the thing that they are known for is that they have intrinsic worth due to their substance and property so precious metals commodities real estate land equipment natural resources these all have some kind of intrinsic value to them whereas paper assets would be assets where ownership’s defined only by paper like as you mentioned stocks and currencies and bonds and things like that. The reality is that in in some cases like you're talking about the definitions might not be as useful it might be a better idea to simply ask yourself in a sort of a common-sense way well what is it that I actually own? You know if you own businesses that are not asset heavy lots of you know and what I mean by assets heavy is like you know lots of machinery, stuff that you could liquidate, it's probably fair to put it in the you know the paper side of things. On the other hand if you have a business that as a significant balance sheet of stuff that could be liquidated you might actually put it in you know the real asset bucket. But I will tell you in knowing yours what you're talking about you invest in a lot of startups I would say that I personally would probably never consider an investment limited partner investment in a start-up as a real asset I mean I think the bottom line is that most of those businesses are not going to have a significant amount of equity or collateral to back your debt so there's not a lot to liquidate there's not a lot of intrinsic value in those businesses other than their ability to produce income. So that's where I would put that. Now what gives real estate and precious metals let's go back to that real status well it's ultimately again their inherent value. that it can't really be erased the way a stock price can go to zero. Or frankly if you talk about businesses what happens if the business that you're invested in Chris what if that goes to zero right? If there's no profit if there's no nothing to distribute etc it's not worth anything anymore right so that that to me is probably the biggest thing to distinguish. Although I should bring up I keep thinking about this as we're talking that you know I was listening to the Peter Schiff they still like to listen to I think he's a smart guy just you know he's a little stubborn and he's always thinking the this guy is falling which I don't I don't agree with him but you know he's on this big rampage against Bitcoin and he's been debating all these people about gold versus Bitcoin which I actually think it's kind of a silly debate because I think the gold and Bitcoin people should sort of you know be on the same side but I think you know it might be in part because Peter sells gold and it's a good opportunity to get in front of people, but one of his arguments about gold is that the reason that it has value is that it has intrinsic properties and those intrinsic properties are that it can be used you know to melt down and make stuff and I think there's true but the problem with this argument there in my opinion is that seriously for those of you who are out there like owning gold have you've owned a few ounces of gold and you store it somewhere are you seriously owning it because you know because you might be able to use it sometime or because somebody might be able to use it or are you using it because somebody thinks it has a value? I would argue that the reason you own it in most cases unless you're like a big jewelry buff or whatever is because somebody because you or you want somebody else to you know at some point pay you more for that then what you bought it for so in that respect it's not a whole lot different from like Bitcoin right like you know people the value of gold it has to do with the fact that it also has a monetary value it's really seen that way if you took that out of it and all of it was just a matter of it being jewelry it would not be worth as much as it is but anyway that's my take on that a little unrelated but I thought I would throw in that commentary. Next question let's see is from Ramin Rafie here we go. Ramin Rafie: Hi Buck. I'm a physician general practitioner. I've been out of residency for about decade now. I have been an employed physician working for a larger corporation making house calls and a hospice director for their large healthcare organization which actually has recently been bought by an insurance company, that's a whole nother story. I actually went to medical school in California. And I've always wondered if it's feasible for me to open up my own kind of practice I don't know enough about the tax structures reimbursement etc, etc. I understand insurances are a big problem and you have to hire a lot of staff that's a waste of resources to strike to insurances but I was debating if solo practitioner doable perhaps direct primary care and if so is one better off just doing a cash face back to this and the legal structure of either having an LLC or an S corp or C Corp I don't know if you can operate on that that's gonna be I guess I need to talk to it accounts it's about that I figured I'd ask you and you might know you might not but I enjoy listening to your podcast it's amazing how many physicians up there are in the same boat. Thanks great time. Buck: Alright so we do have a lot of physician listeners non-physicians to probably about in case you're wondering it's probably about but not just physicians but health care people right so you know physicians dentists and you know you know high doctors and you know all sorts of stuff, chiropractors and that's probably because well I've had a healthcare background myself on doing a few different kinds of surgery and stuff like that but thanks for the question. I'm gonna try to I mean there's a lot there and I think honestly the truth of the matter is I'm not necessarily an expert on all of these issues but you know some of the things I can answer I think will be relative relatively useful to anybody who's thinking about going on their own. First of all I'd say that if you're starting your own thing you know it an LLC is generally going to always be the best structure for a small business for maximum flexibility you can take, if for some reason you want to be taxed as a c-corp you could where you do an S selection so that's pretty easy. The answer your question of you know can you do it the answer is absolutely yes. There are solo practitioners out there now and you can do it and you could probably do it better and that's always generally been my philosophy when starting businesses usually I don't start businesses I'm you know I don't start businesses that have not in some way shape or form shown that they can be a success, I usually rip off somebody's idea and then pivot a little bit add a little bit something and executed and so I think to the extent that there are plenty of sole practitioners out there in California still I think it absolutely can be done. You know so your question about cash versus insurance based medicine just keeping it brief I'll tell you that it's not really an expertise of mine but by but what I can tell you is that coming out of the door with any business if it's just a cash business you're gonna have to advertise like crazy and you're gonna have to run it like a business which not everybody is ready for so the nice thing for physicians and dentists sometimes is that you know if you do take third party payers like you know these insurance companies they drive patients to your door so especially in the area of primary care there's a shortage so I don't think you'd have any trouble if you took insurance getting filled up really quickly and succeeding. Now as far as advice on how to move forward in general first you know again in this applies anybody who's starting a business and anything in my opinion, first of all finding somebody who's doing what you you know you want to do in another market and kind of copy them if you can reach out to them even better if they're not in a competing market but find in you’re case find a you know solo practitioner market that's similar to what you're trying to do and is showing a success and you know see if they're willing to spend some time with you I would offer to pay them because everybody's helpful until it's like damn I'm busy and this guy wants me to help him. But I think if you say hey now you get a successful thing there I'm looking for some help and you know looking for some consulting from a successful practice it might be useful. Another option of course is to go straight to a consultant and again this applies to every business in my opinion. Of course there's a lot of you know consultants out there. I had one for my first practice ultimately it was a cosmetic surgery business and again I ran this thing not like a medical thing, I didn't take any third-party insurance and stuff but I marketed like crazy I knew nothing about running a business or marketing when I started this the business I set out to start ended up looking nothing like the one I ended up with. What I ended up with was a lot better because I learned a lot on the job. But a lot of the back end things whether it's medical whether it's you know any kind of business or the same right I mean you've got to figure out how do you pay bills how do you set up all the systems accounting payroll and that for me where the consulting was like a really useful thing and I'm you know at the time I think I must have paid like twenty five thirty thousand dollars for and it seemed really expensive but I can tell you in any start-up situation you are much better off spending some money up front with someone holding your hand getting you started quickly and you know I have been you know. I literally have friends I have a couple of friends who've been trying to start up their own practices from multiple years now they could have been up and running in like three months if they just had paid somebody to get it done. So don't be that person you know anyway that's a message for everyone really if you have a problem, now remember this if you have a problem that you can write a check to someone to fix, you don't have a problem right? So that's the way you deal with this stuff don't spend all your time trying to deal with stupid little problems think of yourself as a you know is a thoroughbred right I mean you save yourself for you know high-value tasks. If you mess around and try to do everything yourself you're gonna end up worse I pretty much guarantee it, that goes for anyone starting any kind of business for the first time. So finally I would just say that I don't know a single I don't know a single health care provider in particular I know there's a lot of you out there with your own practice that once you have your own thing would ever go back to working for someone else or who'd ever want to go back for working for someone else, I know some of you have done it after you've sold your practice which is different you sitting on a huge chunk of cash but if you have any sort of entrepreneurial spirit and like the idea of not having limits on the upper end I would highly encourage it. All right so hopefully that's helpful and you know it's broadly I think it's broadly applicable to a lot of people who have ever contemplated any kind of entrepreneurial activities. So let's see the last one that's an actual voice one so let's do that from Ravi. Ravi Ghanta: Hi buck this is Ravi Ghanta I just wanted to say thank you for all of your hard work and for providing such valuable information to this community. As part of the investor I've gained so much knowledge from you as well as from your guests on your podcast. Unfortunately I have not been able to attend the Meetup and I won't be able to go to the next meetup in Dallas in September, however I was wondering if you would consider creating a directory of some sort where those who are willing to provide their name their mailing address email address or even phone number to create a community where we can interact with each other you know perhaps by having this information we can even meet up with each other in different places informally, we can also discuss things you know we may all many of us are in the medical field and other specialties or other aspects of business and crafts developing contacts in that way just a thought. But once again thank you for your insightful information and I look forward to continuing to work with you. Thank you. Buck: All right thanks Ravi. Ravi again is a member of the investor group now I don't think Ravi's part of Wealth Formula Network and that could be part of the confusion or not confusion but part of the question you answer the question which is, is there community that you could join or have you know or have some additional contact. The first thing I'm going to tell you there is that's really what Wealth Formula Network was really all about. So Wealth Formula Network is the online private community we have you know a very strong community there are a lot of people who are really just interested in connecting with one another it is of course that started out with the course and the course was with you know with Tom Wheelwright, Ken McElroy real estate guys bunch of guys I know sort of us gives you the bases gives you the foundation for things that we talk about and then we have these bi-weekly phone calls these bi-weekly phone calls are very useful they're not just phone calls they're zoom phone calls zoom video so we can see each other it's very personal and we have very in-depth conversation, people who are on in well formula Network often create relationships off line off community and that's certainly an option for you. In terms of online communities I would say that I probably wouldn't do anything else and the reason being that anytime you preside over an online community you kind of have to keep an eye on it and I I have well formula Network and that's really all I really want to focus in on I don't really want to you know monitor other sites. As far as you know people putting their information out and stuff I don't necessarily have a problem with that the thing that I worry about is if it's anywhere that people can access, I worry about your privacy because you know we have an extremely robust audience here including you know an accredited investor list of over a thousand people and if there's some like you know advisors registered advisors or you know people who are trying to get to those people they will spam you like crazy if they ever got a hold of that. But Ravi let me think about it because there could be a way to do you know to what you're talking about to a certain extent you know we certainly like I said we certainly already do this kind of thing and within Wealth Formula Network if that's of interest you check it out WealthFormulaRoadmap.com I think you'd probably really enjoy that if you enjoy the show. So all right I don't have any more video I don't have any recorded questions I have a couple of written ones I'm going to get to those the first one says is from Robert McLeod. He says I've been listening your podcast for the last couple years now I know you're a huge proponent of investing in real estate assets especially multifamily but I can't remember you've ever discussed mobile homes. I was wondering if you've looked into investing in or thought of mobile home park space. Thanks for the informative podcast. So it's a sensitive thing because I know there's a lot of people were interested in that people listen to this and friends of mine who are involved in this but you ask I'll answer. To be honest I'm not a big fan of that space right now here's why the cap rates on these things are approaching multifamily real estate right multifamily can always be improved significantly and attract higher level tenants and then areas get gentrified, they get improved I mean there's some improvement ability in mobile home parks right but it's really capped I mean think about it at some point you don't want to live in a damn mobile home anymore right. so here's a good example of you know how multifamily doesn't really have on that cap Chicago Lincoln Park is one of the like fanciest parts of Chicago's really expensive jam-packed full of mansions and stuff now, but there's also a bunch of apartment buildings that are over a hundred years old and you know forty years ago Lincoln Park was an absolute dump and it was dangerous and no one wanted to live there and then it got gentrified and all these places that were probably low income housing are now these incredibly luxurious apartments have been upgraded like crazy and now they are you know now they're multi-million dollar asset selling at ridiculous cap rates. Now tell me how do you do that with a mobile home community? You can't right. So at some point if people are doing well they want to move out of a mobile home park so you can't keep raising rents and expect people to live there so that's one reason so now so if you're capped on an appreciation of rents it's gonna cap your equity upside so now the syndicators out there that I'm seeing especially on the limited partners side are giving returns that frankly are inferior to what we're getting in multifamily an investor club by a longshot I know some of you like this area but I don't and I sure as hell would never invest in a limited partnership like this for returns that are less than double-digit again that's just me though. So finally let me just say this, my philosophy right now in general, buy quality assets don't buy crap okay. I see people posting stuff on Facebook about single family you know Class C Class D homes they bought we're supposed to cash flow like crazy and they you know all they have is problems now you know the idea is that these things might look good on numbers but when you add in the capex and paying for damages and you tenants I mean you may not cash flow at all people are losing money on this stuff left and right so there's a reason why these numbers look so good on paper because they're not good investments and people are trying to sell you them so bottom line is I'm not saying that mobile home parks are you know bad for everyone. I'm just saying that I personally look at the alternative and the alternatives from me are better. I prefer to focus on high quality assets and markets that are growing quickly right. I mean to me I mean it may be boring and repetitive what I do but I can tell you from personal experience it works and I think chasing yield in the idea of going to lower quality assets are going to tertiary markets is a very very bad idea because those are the markets those are the areas in my view that are going to suffer the most if and when there's a significant recessionary activity or market turnaround so hopefully that answers that. Next question Mark Dvorak. Hello can you talk about on your podcast about real estate professional? I feel like it's the ultimate green card to play in real estate as passive losses are you limited? Everyone only talks about this powerful designation briefly. Like the 750 hour rule, can two people count towards those? What are the max deductions and then he says for LP is what are the max deductions one can get without being a real estate professional, a show detailing all these options. Well let me just be brief about this, the reason people are briefed about it is because for the most part there the definition of real estate professional is this ok 750 hours of documented actual work in real estate like not just being a limited partner but you know looking for real estate acquiring you know talking to people whatever you got to have that 750 hours per year and it can't be two people no it has to be one person and you can't have anything that you're doing more of so it's not I've heard some people say they're gonna try to do it with a full-time job I just don't recommend it I think the IRS is gonna not take you seriously in that situation but you know you could try. In that situation of course the losses there's no cap to your losses. The beauty of it is what what you're talking about is say you have a spouse who has a W2 income that's active income but as you as a professional real estate professional all of the passive losses that you generate through depreciation where most people who are not real estate investors can only offset those against passive investments, you can offset that against active active income because your losses as a real estate professional your what would be passive loss has become activated. So if you've got $100,000 loss from real estate depreciation you could offset you know your hundred thousand dollars of your Weiss active income because you're filing jointly right. So that's that's the Holy Grail you're right I think it's a big deal and so but that's really all there is to it. I mean you have to find a CPA who can guide you on this you know I would recommend you know for somebody from WealthAbility and pretty much anybody there's gonna tell you all the right rules but really the issue with the that is you got to find a CPA who's going to tell you how to do it and then stand by you in in the event of an audit. An audit not it's not a bad you know it's not the end of the world it happens anybody's making money you gotta have somebody who is actually you know going to defend that successfully. So anyway that's it in terms of the caps about you know being a limited partner and what are some of the maximum deductions you can get without being a real estate professional the honest truth is that I don't I don't know that there's any really maximum deductions for real estate I mean listen if you have a hundred thousand dollars or two hundred thousand or a million dollars of passive income and you have those losses you have passive losses out of the same amount you could deduct it all so there's no cap at all. I mean the only thing I think there's a cap on I think charitable giving is about fifty percent you know charitable giving fifty percent but you know and then and then there's all your typical things that I don't you know I don't really get into about you know the basic accounting deductions and things like that for other things but I'll tell you from the standpoint of real estate there really is no cap on deductions, it's just you know it's what you have whatever if you're in the passive column as is a non real estate professional you could deduct all that and then the active side you could deduct all of your depreciation against all of your income. So that's pretty straightforward. Okay last question and it's from Betty and she said Buck I heard you talking about a bad drug reaction you had a Minneapolis. What was the drug that gave you the bad reaction yeah so let me let me tell you about that I am those last show I talked about that was my near-death experience thing where I thought I was gonna die, listen to this show you'll get the whole story but bottom line is as it turned out it was a CBD tincture. And I took some CBD for my back in in Santa Barbara and it worked really well for me and then I don't know what was in this bottle that I bought but it just gave me some sort of crazy out-of-body experience and I'm it wasn't like being stoned okay I I've been to college I know what that feels like was something was very wrong, anyway it was the CBD it's a long story. Bottom line is if you are interested in that story and how what I came about listened to show where I talk about this in the last show I think it's probably last week according where this is and you will you'll hear about that. By the way, I'll say that you know riffing off that last show I'm looking again those vintage cars to things that mattered the most of lessons that I had there were to make sure to take care of your family so look at Wealth Formula Banking make sure you you know get into that and and and try to you know align your investments with legacy to a certain extent that's one of my takeaways the other one was to try to have a little bit of fun here and and don't always push it away into delayed gratification. Okay that's it for the questions today and we will be right back.
ECOCRYPTO ECOCRYPTO FOR GREEN CRYPTOCURRENCY MINING FUTURE OF CRYPTOCURRENCY DEPENDS ON ECOLOGICAL MINING "CRYPTOCURRENCY DEPENDS ON ECOLOGICAL MINING" Donate BTC to support awareness enquiry: 1EaSG3WmY5fRXedhy9tbbJK3tGftKp4sAZ Sourcece: https://cryptobriefing.com/green-crypto-mining-38bn-future/ · Home · Analysis · Green Crypto Mining Will Define The Industry’s $38bn Future Chones / Shutterstock & CB ANALYSIS
Green Crypto Mining Will Define The Industry’s $38bn Future
Energy usage will drop by design thanks to these critical industry developments.
📷By Nick Hall On Aug 10, 2018 1,779 1 In March this year, the sky officially fell in for Bitcoin miners. With the slump in prices and the extraordinary energy consumption it takes to mine the coins, Fortune revealed that mining a Bitcoin cost as much as buying one. Green crypto mining wasn’t even on the radar for most people until earlier this year. That was back in March and they were the good times. Morgan Stanley revealed in April that Bitcoin miners would lose money if Bitcoin slipped below $8,600, even with low electricity figures factored in. A recent study by Coinshare showed that the numbers attributed to the Bitcoin mining industry have been grossly exaggerated and the energy consumption is approximately 50% of the claimed 70TWh. But the numbers are still too high in terms of the financial outlay and the environmental impact of mining cryptocurrency. Mining doesn’t begin and end with Bitcoin – and although the consensus is (mostly) set in stone, the way we create the energy needed to extract the next part of the puzzle isn’t. Which is why green crypto mining is the ONLY solution to the diminishing returns issue: more cost, for less reward, will eventually lead to an abandonment of the mine, just as it did for gold miners in California in 1848-49. We’re not looking for one single solution either. We need four separate ones:
A lighter consensus algorithm
Cloud-based cryptocurrency mining.
Renewable, cheaper energy sources to support physical ‘mines’.
Brutal consolidation in the mining industry.
What is cryptocurrency mining?
The Proof-of-Work (PoW) protocol was popularized by shadowy Bitcoin founder Satoshi Nakamoto, building on earlier work by a variety of computer scientists including Hal Finney, and it’s a two-stage process to validate transactions and keep a flow of Bitcoins entering the market. Blocks of data are parsed off and, with Bitcoin, they contain about 1MB. Each block is then locked and coded. Miners then compete to solve the puzzle and provide the 64-digit hexadecimal key code that it then has to match with a corresponding ‘nonce’, numbers used only once, to claim the reward for unlocking the block and mine Bitcoins. There’s a small fee for validating the transactions, but the Bitcoin miners are really like the old gold miners and they’re after the big paydays.
Why is Bitcoin mining expensive?
In the old days, Bitcoin mining was easy. Back in 2009, a standard desktop computer could mine up to 200 Bitcoin a day. But speed is everything and Bitcoin mining turned into an arms race as Bitcoin soared and the well-funded miners went to war. Companies like Bitmain, Bitfury and Vogogo spotted a gap in the market and brought professionalism to the Bitcoin mining industry. The Wild West days fell by the wayside and suddenly a standard computer chip would take 98 years to mine one coin, as the super fast rigs of the new breed simply stomped the casual miner into the dust. The cryptocurrency mining industry even caused the great computer graphics card drought of 2017-2018 as demand for GPUs literally outstripped supply. Used cards were even selling above sticker price and the shelves in-store were stripped bare, but the big guns were already spending tens of millions of dollars to put these home brew operations out of business. These aren’t computers anymore, they are mission control centers and the power it takes to keep them running is a serious issue for the company’s bottom line and the environmental lobby. So the industry is looking for a number of different green crypto mining solutions, that will gel together in some haphazard way to form the future of the cryptocurrency market. The main obstacles are:
1. A greener algorithm
It may be hard to visualize the blockchain itself, but we don’t need to. Technology almost always gets lighter, smaller and slimmer. The same needs to happen to block production. Blockchain is middleware and it needs to be slimmed down, without sacrificing security or functionality. That’s an ongoing evolutionary process, as it was with smartphones, and the blockchain we’re using in 20 years will likely have little in common with today’s code. Proof-of-Stake consensus algorithms have been pitched as one way of reducing crypto’s carbon footprint. Instead of competing for block rewards, producers would take turns, weighted by the size of their stake in the network. Staking is unlikely to catch on in the Bitcoin community, but it has many supporters with Ethereum as well as other cryptocurrencies.. That would make the whole validation process more efficient and cheap.
2. Cloud-based cryptocurrency mining
There are mining firms that are still investing millions of dollars in physical equipment and taking on all the sunk costs, when the Cloud is simply taking over the world of advanced computing. Cloud-based cryptocurrency mining companies are already selling packages to the general public and the Cloud offers increased security, speed and essentially a small slice of the world’s computing power, rather than the machines you buy, install and power up. It also potentially offers AI integration that could leave the traditional cryptocurrency miners hopelessly panning for gold in a dead river. The Cloud has made self-driving cars and robots a reality. It can certainly ramp up the speed of calculations and leave even a multi-million dollar mining rig trailing in its wake. The switch to Cloud-based mining is good news for the environment, too, as the power demands would move to localities with the cheapest energy. Without these wild spikes in energy consumption and without these concentrated mines, the main complaints about the industry will simply cease to be an issue.
3. Renewable, cheap energy for grand-scale mines
Cloud-based cryptocurrency mining looks like the obvious solution, but it’s the final cost that determines the methodology when it comes to crypto mining and there is more than one way to do this. Technically, the likes of Elon Musk could turn the arid sub-Saharan scrubland into the biggest and most prosperous cryptocurrency mine in the world with a vast array of solar panels and Tesla PowerPack batteries to keep it running through the night. Cheap land and free energy means that hardware would be the only major cost to consider in this instance. Alternatively, a State-sponsored mining firm in a smaller nation could easily co-opt hydroelectric or solar providers to work with them to reduce energy costs. Even the ones that use grid power can select the world’s cheapest nations and bulk buy energy in blocks. Potentially, then, we could still have the grand-scale mines that bring economy of scale and environmentally-friendly energy production to the world of cryptocurrency mining.
4. Brutal consolidation
It does not matter how the industry develops, or if Cloud computing or giant mines are the future, the days of the home cryptocurrency miner are numbered. Just like the mom and pop mines of the goldrush days gave way to corporate giants with drilling and excavation machinery that made the old pick and shovel look slightly ridiculous, the same will happen in cryptocurrency mining. Competition will continue to grow, the margins will likely drop even further and the flagrant energy use of today’s cryptocurrency miners simply won’t be an option. Miners that don’t streamline their operations and adopt some form of green crypto mining process will simply run at a loss until they go out of business. Bil Tai is the Chairman of Hul 8, the North American arm of Bitfury Group and one of the biggest suppliers of cryptocurrency mining equipment of the world. Even he expects just 5-10 giant mining companies to survive the impending cull. “It’s totally different this year,” he told Bloomberg. “The bitcoin mining industry was this mysterious, dark, cottage industry. It’s about to grow up and scale institutionally.” There’s a dark side to these tech giants emerging, as they will technically have the power to exert an influence on a coin’s value, not just its creation. That is a problem the industry will have to examine at some point. This simple danger, though, is not enough to turn back the tide of progress. So, we can expect to see a hand