Astronomical Mining Difficulty
Unlike Steem which can be earned (mined) through blogging, bitcoin still has to be mined using supercomputers in order to be generated. Hash-rate made new highs nearing 15 exahashs/second. This is much more than the estimated computer power needed to imitate a human brain's capabilities! It has made GPU (Graphics Processing Unit) mining extremely difficult to set up for profitability. No wonder, ASICs have dominated the Bitcoin mining industry and all older mining hardware can no longer generate enough revenue to cover the cost of the electricity used during operation.
The development of ASICs (Application-Specific Integrated Circuits) designed only for mining cryptocurrencies made the tremendous increase in hash rate possible. The quickly sold out new ASICs from Halong Mining promises 16TH/s of computing power per rig. These rigs are connected in enormous warehouses all across the world, usually where there is low-cost electricity.
The vast majority of mining happens in China, although this may change abruptly when new government regulations get implemented. Venezuela is also encouraging to the mining community due to political turmoil. Electricity there is cheap too. Louisiana and Washington States In the U.S are the best places to mine in terms of electricity costs. On the other hand, Hawaii and Alaska are the most expensive places to mine Bitcoin.
Bitcoin price -along with fees are skyrocketing!
Transaction fees are charged in every bitcoin transaction in order to have a miner process your transaction and confirmed by the Bitcoin network.
The space available for transactions in a block is currently artificially limited to 1 MB. This means that to get your transaction processed quickly you will have to outbid other users. Source
Bitcoin shot up in value again as it hit the $20,000 milestone a couple of days ago. Despite the incredible rise in value, a recent survey of 53 economists carried out by the Wall Street Journal found that 51 considered Bitcoin’s price unsustainable.
Although bitcoin is well-known as a bubble -with many warnings it will inevitably burst, nobody knows when it will eventually collapse. The higher the price goes, the higher the uncertainty and the greater the risk.
The severe price correction and high transaction fees for bitcoin may be an indication that it has become overbought relative to its actual network capability. According to some analysts, the rise in transaction fees could trigger a crash. Reference
Another study by Anglia Ruskin University, Trinity College Dublin and Dublin City University released on Friday said bitcoin could pose a threat to the financial stability of traditional currencies and markets.
What are the advantages of Steem?
With Steem, you can earn it through blogging and if you're not into writing, there are many ways to create a valuable post. There's no need to set up a large rig in order to earn bitcoin yourself.
You can transfer Steem (even Steem dollars) without a fee to any other member on the platform. There's no need to pay a transaction fee.
Wallet addresses are simple: the same as the username. For example, if you want to send me money, just transfer to hiroyamagishi. - It's that easy! There's no need to copy and paste a very long set of mixed letters and numbers.
Conclusion
My hopes are high for Steem. Its price is more stable (close to the dollar) and it works more like a currency than bitcoin. Investing in steem means you're investing in your influence in the community and it gives you more than money. - Way more than financial rewards.
Please upvote, resteem and follow me, thank you.
