Cryptovest had the opportunity to discuss the encryption and market dynamics with the Product Director of Hashtoro Alexander Petersons.
CV: How do you see the future of the crypt after the last massacre of the market?
The market is experiencing a period of decline, but it is temporary. It is probably the seventh time that the cryptomarket has been declared dead. It will resume again. The fall in the price of Bitcoin occurred this year was caused by the liquidation of the activities of Mt.Gox. Under certain conditions, Bitcoin can reach 50,000 this year. We will also see a shift from personal to cloud-based mining due to the increasing difficulty of hash calculations. I expect other cloud mining sites to appear in the coming years.
CV: Which coins do you think will survive in the next two years and which ones will be forgotten?
The best cryptocurrencies that are in circulation will survive. BTC, BCH, ETH, LTC and Monero are not going anywhere. This is one of the reasons why we have chosen to exploit the cryptocurrencies that are in great demand.
CV: How popular is the extraction of altcoins like Ethereum, Litecoin, Monero, DASH and others?
The extraction of Bitcoin promises high yields, but after falling prices and increasing mining difficulties, many miners have turned to bassists. The cryptocurrency market is extremely volatile and mining profitability depends on price dynamics. At the beginning of 2018, it was more advantageous to extract ETH and LTC. When the price fell, Bitcoin extraction became more useful. We move BTC, LTC and ETH in equal quantities to distribute risks.
CV: There were rumors that mining could die. Is it possible that one day the pole test algorithms will replace the job test?
First, the mining industry will never die: there will always be mine coins. Yes, Ethereum plans to go to the game test. If this happens, the demand for other coins will increase and their price will also increase. Secondly, I am a supporter of job tests. PoS currencies are not able to fully protect transactions from censorship, while mining and proof-of-work help create and maintain an economically viable and tolerable network of Byzantine failures. Buterin says that PoW is a wasteful algorithm – I say, we can find ways to make it more efficient.
CV: was it inefficiency that made Hofflare unprofitable?
Yes, according to their statement, the total expenses exceeded the gains, making the mining Bitcoin unprofitable. Hashflare's management said it did its best to lower costs, but it did not work. However, all SHA-256 contracts have been resumed shortly.
CV: How can we guarantee that mining is still practicable today?
The only way to get a reliable profit is to reduce electricity and maintenance costs significantly. Even in today's crisis, cloud mining can still be profitable. Hashtoro farms are located in crypto-compatible European countries with access to low-cost renewable energy sources. The excess heat generated by our equipment is used to heat the water for the local community, which covers 20% of our electricity costs. The use of ASIC systems with immersion cooling gives us more efficiency. We accelerate the Bitmain plants, which provide us with a 10-20% surplus hash rate – but we also plan to create our optimized chips in the near future.
Our system determines which currency is most advantageous for the moment and dynamically passes to it. At the end of the day, all the coins extracted are converted into the currency of the contract chosen by the user. The tests show that in this way our customers receive up to 10% more profit.
These strategies allow us to be more effective, significantly reduce expenses, offer the cheapest mining cloud plans available in the market and protect the environment all at
CV: What about Bitcoin? Its hash rate has reached dizzying heights, with the appearance of new and more efficient farms. Is it still profitable for mine?
Yes, if it is done on an industrial scale, with the most modern equipment. Few individual miners can afford it, but cloud service providers make Bitcoin mining possible and profitable for them. With Hashtoro you can always extract a certain amount of BTC, depending on the complexity of the extraction. We make payments every day, so part of the money raised can be reinvested in new capacities.
CV: In recent years there have been many scams in the mining cloud. Have you ever influenced Hashtoro's marketing?
The open-cast mining market is growing. This has attracted many scammers who have created a series of scam sites in the cloud. To stand out from the crowd, you must demonstrate your reliability and continue to offer quality service. In the cryptic world, people recommend services that are worth investing in. It's word of mouth that works. And it definitely worked for us. At the moment, we have limited the maximum hash rate for Bitcoin data mining contracts and we will probably have to temporarily close new ETH and LTC contracts due to high demand.
CV: What is your opinion about Bitmain's influence on the extraction of Bitcoins and other coins?
At the moment Bitmain is one of the strongest and most influential actors on the market. Some people fear that centralization can lead to 51% of attacks. But the ASIC mining trend is a form of protection in itself. The production of ASIC chips requires a lot of time and resources, while attacking the net would drop the price of the coins, cause hard forks and make unnecessary equipment expensive. It will still be a good thing if the production of ASIC becomes more distributed in the future. If more companies would create their chips and compete with Bitmain, it will contribute to decentralization.
CV: what would be your advice for an investor, or a trader, who wants to enter the cryptomarket now, in August / September 2018?
I would recommend keeping your assets and buying more Bitcoins while the price is low. It's also a good time to analyze the market, to explore your options and get more crypto-educated. The cryptocurrencies are shaping the world, they have already become part of his daily life. As soon as they are more widely legalized, we will see their growth.
About Alexander Petersons
Alexander Petersons is the product director of the cloud mining service Hashtoro.com . He is an IT specialist and serial entrepreneur who started his professional career in small IT companies in Europe, and then moved to America for several years. He also worked on the development of mobile processors in the telecommunications equipment company Qualcomm (USA).