Posted on

How profitable is the Antminer S9 in South Africa?       

Bitcoins have become harder and harder to mine for various reasons. With more and more bitcoins discovered, the difficult has risen from 520,569,941 GH/s to the present record high of 1,426,731,353 GH/s. This is a tripling of difficulty in mining bitcoins. This might paint a bleak picture of the profitability of bitcoin mining, but equipment like the Antminer have become more powerful.

We previously looked at how profitable Crypto currency mining can be in South Africa. Today, we’ll look at a specific piece of equipment that is very popular in Bitcoin mining circles. It’s the new Antminer S9, a 14TH bitcoin miner.

Not only does it have added processing power, it also draws around 1372W in power, which is a pretty low rate, compared to technology that existed even 10 years ago. This means that our profit can still be as high as it was previously.

Cost and Profit

One can buy an Antminer S9 for as little as 43,000 rand. However, you are more likely to find one around 55,000 rand. This might seem like a steep investment upfront, but we will show you that you are likely to break even in around an year.

With this processing rate, you will be looking at mining around Ƀ 0.001070 per day. This would be around 120.47 South African Rand per day, at current exchange rates. The power cost for this would be around 32.91 Rand per day, and could be even lower, depending on your tariff.

This would net you around 2632 Rand per month. In an year, you’re looking at a profit of 31,584, once you factor in the electricity payments you would have to make. If you get a cheap Antminer at around 43000 Rand, you’d break even in around 16 months, which is about a little more than an year.

Additional Factors

All the above is assuming that bitcoin prices stay stagnant or fall slightly. However, the reality is that Bitcoin prices have risen year on year since the beginning. What you could be looking at is a profit far greater than what we have shown here, which is assuming a worst case scenario. In reality, Bitcoins rose around 20 times its initial value in 2017, and if the same rate continues in 2018, then you will be looking at breaking even in less than even an year, and in fact, being at a profit greater than the price of the equipment you bought.

Assuming that you net around 0.39 Bitcoins in the year. This is around 44000 rand currently, and you would spend around 12,394.04 on electricity bills. However, if the value of Bitcoins doubles by the end of 2018 (A very conservative estimate when you realise it increased 20 times in 2017), then you would have made a profit of around 66000 rand in the year, which is far greater than the price of the Antminer. If it increases 20 times, like it did in 2017, you will have netted 867,000 Rand, which is more than 10 times the price of an Antminer

Conclusion

An Antminer is a wise investment to make in search of mining bitcoins in South Africa. If you can afford to invest, then this is an excellent choice to make.

 

Posted on

Popular Stores in South Africa to Spend Bitcoins

Popular stores where you can spend Bitcoins

As we mentioned in a previous article, Bitcoins can now be spent at an increasing number of outlets. Today, we’ll look at the number of stores that allow you to spend Bitcoins, and how easy it is to spend Bitcoins there. But first, let’s look at one of the alternative methods of accessing your wallet, which can also be used to spend Bitcoins

PayFast

Any store which supports Payfast, and there are literally thousands of them, can be used to spend Bitcoins, if you have a card linked to your Wallet. By far the easiest method of spending your Bitcoins, Payfast is an excellent and convenient service to use while spending your Bitcoins.

30000 stores are linked to Payfast. With a wallet that is linked to a Payfast account, you can access your wallet to pay at any of these stores. The added bonus of this is that you don’t need to concern yourself with whether a store will accept your Bitcoins or not, as the service is Payfast, and not your Bitcoins or Ethereum. This means that no store can reject your Payment of Cryptocurrency, as it doesn’t matter to them what the currency you’re paying in is, they get their money in Rand. This can be extremely useful as some businesses are extremely resistant to change and adopting to newer times, so Payfast’s unique service helps you spend your wallet easily, without consistently carrying around a large amount of cash from converting your Wallet into South African Rand.

Remember though, that Payfast is not free, and will charge a small amount for your card. However, this payment is easily worth it and a lot less than what it will cost you to keep exchanging Bitcoins or Ethereum on the Market, especially given how volatile the currency is. While rates are rising on average, they may also suffer steep falls and you may suffer losses, if you withdraw money at the wrong time. With Payfast, that is not an issue.

Specific Stores

There are some specific stores that allow you to spend Bitcoins there. Here are a few of them:-

  • 12 Hours
  • 4Kids
  • Action Gear
  • AppleBee
  • Best Education
  • Bit Refill (Allows you to top up your mobile phone using Bitcoins)
  • Cape Coffee Beans
  • Future Lights
  • HP Online
  • Juice Revolution
  • MyoMed Medical Supplies
  • Nelson Mandela’s Children Fund

 

As you can see, this is a wide list which covers a lot of different areas. This isn’t even a 10th of the total number of stores that accept Bitcoins. Many are popular, many less so. But they all represent a great place to spend your hard earned crypto Currency.

Posted on

Altcoins, the phenomenon of newer Crypto Currencies

Introduction to Altcoins

Altcoins have become a new buzzword in the Crypto Currency community. However, not many people know what Altcoins are really about. Today, we’ll look at what Altcoins are and how they can be of benefit to mine and to trade. We’ll alsolook at them as a long term alternative to Bitcoins, where the reward now is lower than it was on the start.

Altcoin comes from two words, “alt”, shortened for Alternative, and Coins. They are basically alternative currency to the more popular Bitcoin. Ethereum was once an example of this, but now that it’s become a lot more mainstream.

Advantages of Altcoins

Altcoins are far easier to mine as there are less people mining them. Since they’re easier to mine, it means you can make a profit without investing highly in specialized mining equipment. This means that they can be mined without specialized equipment.

They are also typically cheaper and liable to rise in value much faster, so if you’re looking to buy coins in bulk, or looking for the Coins you’ve mined to rise in value, then Altcoins are your best bet to getting the best bang for your buck.

Disadvantages of Altcoins

They can collapse for no reason. Unlike Bitcoin and Ethereum, newer currencies are liable to large falls in value, and can also suddenly just disappear. It’s also much harder to convert them into other forms of conventional currency, so you could end up with the farcical situation of having something with no value. Their volatility might mean more profit, but they could mean more loss and that is something that you do not want.

Strategy for investing in Altcoins

With their potential for collapse in mind, you want to Mine altcoins early and fast. That is, either on release, or before a lot of people have begun mining. You’d then want to switch this currency as it rises to a more conventional one like Bitcoin and Litecoin, or Ethereum. Once this is done, you can continue mining the currency until you see any signs of it falling in value. When you do see it falling in value, switch to mining another currency.

So invest early, mine quickly, and then move on to the next Altcoin, while holding your currency in a more traditional Bitcoin for it to grow, and for you to have all the advantage of mining currency, with very little of the risk.

Posted on

What does Mining Crypto Currency really mean?

Last time, we looked at Crypto Currency and what it means. This time, we’ll look at Mining, and its potential.

What is mining?

Many people are confused as to what mining actually is. With many thinking Bitcoins as some sort of hacker’s currency, it’s not surprising that Crypto Currency jargon is shrouded in mystique. With that in mind, in this article, we’ll clear up what mining actually is.

Anthony Volastro has defined mining as, “‘Mining’ is lingo for the discovery of new bitcoins – just like finding gold. In reality, it’s simply the verification of bitcoin transactions.” And how is that done? “It’s not just one transaction individuals are trying to verify; it’s many. All the transactions are gathered into boxes with a virtual padlock on them – called ‘block chains’ … Miners run software to find the key that will open that padlock.” And when they achieve that, new bitcoins are released as a reward.”

As Volastro said, mining is about finding the write combination to unlock a Bitcoin or any Cryptocurrency. The rate at which this is done is called the Hashrate

 

Can Mining be Profitable?

Dire warnings about the future of Cryptocurrency have scared off quite a few people from investing in what is clearly the currency of the future. However, these warnings are mostly scaremongering from a group of people who find the idea of a cryptocurrency threatening to their current position or the future position of the institution they work for. While Cryptocurrency isn’t guaranteed to continue growing, it is something that has established itself and isn’t going anyway. The two biggest platforms are completely secure, and heavily backed by many people, so the safety of the platform is nothing to worry about.

 

With that said, the question is how profitable mining can be?

The answer to that question is that it can be as profitable as you make it. You can make very little money, mining a few hours of the day while using your computer for different applications. You can make a larger profit by buying a dedicated mining rig and using it, and breaking even within one year, as we will show in the next article. A dedicated mining setup can earn to the tune of a few thousand dollars, to the tune of a few hundred thousand dollars, depending on how much you invest.

 

Why don’t more people mine if it’s profitable?

This is a question bandied about by many skeptics in the world. If something is so good, why are more people not doing it? It’s a valid question, however, let’s consider another question. How many people in the world are prepared to take a risk to make a profit?

The answer is not very many, and that is why Cryptocurrency is yet to completely take off, even though more and more people are using it every day. And this is good news for you, because the more the number of people that mine, the less the profit. So get into the game now, before the profit is completely wiped out, and Cryptocurrency turns into just another currency.

Posted on

The rising phenomena of Crypto Currency

 

What is Crypto Currency?

Millions of people around the world are now investing in the phenomena known as Crypto Currency. From Australia to the USA, from China to Russia, from South Africa to India, millions around the globe have become embroiled in the trading and mining of Crypto Currency.

We’ll define both mining and trading later. First up though, the question is, what is Crypto Currency?

Crypto Currency

Crypto Currency is basically an online currency. To understand this, let’s look at Bitcoin, the first of its kind. Now what separates Crypto Currency from other more centralized forms of currencies spent online by banks?

For this, you need to realize that to make digital payments work, you need a payment network with accounts, balances, and transaction. However, the issue with money online is that you can accidentally spend it twice, and a bank has to prevent an error like that. Double spending would mean a person could spend more money than he has and this would put a bank out of pocket. To do this, a central authority (The Bank) checks every transaction and ensures that no money is able to be spent twice

Difference between Crypto Currency and Traditional Currencies 

Here in lies the key difference. In this form of decentralized currency, every single entity of the network has to do this job of double checking. If even one is wrong, then the whole network will fall down. Yet in over 10 years, not one time has there ever been a mistake.

This is because Bitcoins and any other digital currency (Or even physical currency for that matter) are basically a list of records in a database that list the value of currency. That’s all they are, that’s the entire basis of currency. And if you can get decentralized nodes to check the database for you to ensure that no coin is spent twice, you’ve created a network that does the job for you.

Why does Crypto Currency Matter?

The main reason why Crypto Currency matters is because there’s a lot of potential in the currency. Like any new currency, there are a limited number of coins in it. However, here’s where the difference ends.

Not all Bitcoins have been distributed, and Bitcoins are not the only digital currency. What this means is that there’s potential for you to make money by discovering these coins by mining it, or by trading coins.

Mining is of greater profit in the longer run, while trading can lead to lower returns quicker.

Conclusion

Crypto Currency is the future of Technology. You can either resist it, or you can embrace it and make some profit while you’re at it. The potential of this relatively new technology is immense. With the right guidance, you can make a huge profit of this technology.