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Firstly my apologies to the BB for OT but I only made my post here and on one other BB due to the erudite nature of posters and that the bb was not too busy. I won’t post again OT on ARB so you can switch off now!
Hi OaW this link has a simple explanation, there is also lots on YouTube.
https://www.bitcoinmining.com/
To over simplify and frame, mining is solving problems on the blockchain. What? Ok so let’s look at blockchain possibilities. Imagine you are a shipping transporter, like Maersk (they are currently using blockchain). So you assign a code to every container and every item in that container and their to and from destinations. So I buy some paracetamol in USA for delivery in Venezuela. It takes my cash goes on digital ledger as a crypto currency. Assigns code. Tracks digitally through contiainer transportation overseas from USA and converts into local currency and tags to patient at other end. So there is a digital footprint from factory to a specific patient! Every patient anywhere in the world. (Imagine implications of that). Or I could be in Ethiopia’ and I wanna buy USD so I make a bitcoin conversion and then at other end go back to fiat ‘instantly’. Now some banks are using Ripple (digital currency) for currency transfers now, other independents are using Stellar Lumens. Using crypto means you can process THOUSANDS of transactions per second flawlessly compared to current archaic currency transaction times which use manual clearance and have ridiculous fees and lags in exchange rates. So suddenly you have opened up currency exchange to the ‘unbanked’ as they can do this on their phone. You also have nano payment options so using crypto on say YouTube views you could only be paid for a fraction of an advert that you show or just a part of a musical track that a viewer listens to, literally seconds. These are my own words but you get the gist to help frame blockchain applications. The uses and speed, low friction transfer and code permutations means blockchain applications are pretty limitless. It will imo eventually replace the internet because the code is open protocol, so anyone can see what has happened, it has more applications and the internet is getting clunky! So to answer your question what do they do mining crypto, ARB solve these mathematical problems on the bitcoin blockchain enabling the data to flow and get paid in BTC for doing so. The more difficult the block the more coin. And they get paid for enabling transactions. That’s mining. Or to over simplify it’s more like during the gold rush ARB would be the guys selling shovels to the prospectors! Trek Hi ho! Hi ho!
Thanks for the heads up Trek . I had already seen the outline of the story but I'm afraid I just don't get what they do. Mining crypto? Where is there a simple explanation of what they do and how they fit into the BTC story?
As it happens on Monday, I took a small punt on Argo as on Monday past as I wanted a small part of my portfolio to be in crypto as a hedge and diversification given the current economic and political uncertainty. Admittedly, I have been very sceptical about crypto but over the past few months I have been reading extensively on it and it has gone more mainstream with Fidelity for example offering trading for II in crypto.
On SAVP, it's great to see the recent rise, I have a small position (built up over the past week or so) but nothing like what I had several months ago when I sold out completely around 23p at a significant loss.
see https://www.bloomberg.com/news/articles/2019-05-06/fidelity-said-to-offer-cryptocurrency-trading-within-a-few-weeks
Pretty long off topic but it may be of interest to some while we wait else ignore.
I am invested in Argo Blockchain (ARB), it’s listed on main market (audited accounts). They recently IPO’d and changed their bus plan to mine crypto rather than sell mining capacity to the public. Their fundamentals seem unbelievable, they have no debt, no complex warrant or CNL’s, directors have skin in game and institutions in at much higher SP. They basically get paid in BTC for solving problems on the blockchain (mining). Their breakeven is BTC at $2k, it’s been around $10k so they have been throwing off loads of cash, recently around £1.8m a month. They have just paid out for 15000 new machines, all the capex paid for in cash and have secured the cheapest greenest energy in Canada on an extended deal. Once these machines are on line ARB will be the biggest miner in the world. Scale is important, as is lowest cost. A catalysts for BTC stepping up is if the US SEC authorise BTC/crypto ETF’s. That should force the demand for crypto and crypto assets. ARB would be an obvious choice. When gold ETF’s became available the pog soared like 5 fold, (I have links). Also with trade wars, Hong Kong and sanctions crypto is becoming a safe haven. It behaves like electronic gold. We also have banks increasingly using digital ledger technologies (DLT) for cash transfers, which need mining. Add to that Facebook is ready to launch Libra and some countries like New Zealand accepting crypto as a payment and looking at the MCAP of crypto it isn’t going away. Next year will also see BTC halving which should lift prices higher. ARB are forecast to make £40m a year once the new machines come on line. They are currently 8p. If they turnover that then a SP of £1 will give them a pe of less than 8! Incredible! The obvious caveats are BTC price and competition, mainly in China. I picked up ARB as I wanted exposure to crypto without the hassle of owning the physical as I did lots of research and the trading costs are extortionate and I am not a fan of ETF’s etc as I want to pick my own investments, then along came ARB. Although on main market they are as volatile as an AIM stock so not for many, but atm BTC is undergoing a bit of a pull back so after DYOR it may be a good time to average in if it’s for you. I am waiting for sub 7p to buy more and then sub 6p if the price points get hit fine if not I’ll hold what I got. Anyways it was fun to research something new and anyone that has asked me about it thinks I am barking! Crypto prices are on link below. Trek, woof!
https://coinmarketcap.com/