The trades refuge in the speculation and the rises and lows, Bitcoin’s business is going beyond. How to join the Cryptophane in other business verticals or how to join bitcoin merchant account? Let’s have a look!
It is no longer news that the price of Bitcoin is rising. The cryptocurrency already adds an annual valuation that exceeds 1,000%, and the calculations indicate a Christmas Bitcoin at US $ 12,000. Many traders and brokers are entering the Bitcoin business because it is becoming increasingly popular – and legal, as evidenced by the departure of future Bitcoin in Chicago and the legalization of currency as a means of payment in Japan – to talk about Bitcoin. But the Bitcoin ecosystem business does not die in buying and selling and it is possible, with modest capital, to start making money with ventures that provide some service to the bitcoin community.
On the other Side of the Counter: Create an Exchange
An exchange is the closest thing to a bank that can be found in the bitcoin world. The service that provides a cryptocurrency exchange is to bring together cryptocurrency sellers and buyers. Technically, it works by creating temporary virtual wallets where cryptocurrency purchase and sales orders are stored at certain prices that the parties agree upon. The business of the intermediary is to charge a commission for each of the transactions (the price of the commissions depends on the type of service; some are faster and others more secure).
What Does it Take to Get Started?
The technology platform, the heart of an exchange that supports transactions, can be acquired in several ways.
It can be developed in-house, leaving it in the hands of a specialized team of programmers. The benefit of this is that custom software can be manufactured, incorporating different languages for different cryptocurrencies. At the same time, it becomes easier to add other payment platforms (both banks and other exchanges) and services such as APIs.
Most importantly, the costs and time associated with the development, maintenance and constant updating of software in the company must be estimated. Due to its inherent complex nature, developing an exchange software from scratch is quite expensive and could take between 1 and 2 years (depending on the experience of the developers) until it works properly.
Some products are already armed and are platforms that do not need development. There are two classes: open and free and private. In open source, familiarizing yourself with the operation of the script will take time and modifications that allow customization, also require additional time and money compared to private ones. There is no guarantee that the script is safe and reliable. It can be faulty, susceptible to hacking attempts or, in the worst case, includes malicious lines of code, which slowly but imperceptibly extract the funds. The amount of development support in an open source system is quite small, due to the very nature of open source developments without owners.
Do not buy Bitcoin
Bitcoins are rewards received by users who use different devices to validate transactions through Blockchain technology and through bitcoin merchant account. The reward in the form of cryptocurrencies is the incentive received by the so-called “miners” for being part of the Bitcoin ecosystem providing computing power. Every time the miners solve cryptographic problems, which seals the information in the Blockchain data blocks, they bring security and decentralization to the system. In addition, miners earn bitcoins in the form of fees for each transaction. Another business around cryptocurrencies is to become a miner.
One of the characteristics of any of the popular cryptocurrencies that only a finite amount can be created. This, on the one hand, has the economic impact of inhibiting the emission and generating inflation (or devaluation) in the currency. On the other, to control the cryptocurrency offer, the ability to create them is exponentially more complex. In 2009, when Bitcoin was born, a last-generation home computer was enough to undermine bitcoins but now colossal amounts of computing power are needed to justify mining.
How to know if it is business?
With the new alt-coins that is, cryptographic digital currencies alternative to Bitcoin, it is no longer impossible to find a profitable business in the cryptocurrency mining. For example, it is much cheaper and easier to get a cryptocurrency launched this year or the previous one (such as Ethereum or Litecoin) than a Bitcoin. Therefore, it is not necessary to invest large amounts of capital to find a business in the mine. In fact, in some cases it is possible to opt for mining as an alternative to the speculative buying and selling of cryptocurrencies since in the long breath it will be more profitable. The way to transform all these variables into numbers and calculate if there is business is by using mining
WhatToMine: Information on electricity costs, Hash difficulty, cryptocurrency price and all other variables of interest can be included with this bitcoin merchant account.
CoinWarz: It is a bit easier to use and can include values such as the cost of purchasing the necessary hardware (which of course strongly modifies the company’s return on investment, as well as the electric cost).
CryptoCompare: Simply choose the currency to be mined and enter the hash rate along with the power of the system and the cost of energy. The website shows what the earnings are every day, along with the amount of currency you are going to extract. It is simple to use but does not take into account certain variable costs from country to country.
Neither Buy nor Mine, Create a new Bitcoin
The software that feeds Bitcoin is open source and free download. It can be found in this link from Github. With that code, it is possible to apply modifications to the Bitcoin code and launch new cryptocurrencies.
That is the Case of the Latest Bitcoin Fork: Cash and Gold
In an overvalued market such as cryptocurrency, it is not difficult to see that many want to be the next Bitcoin. The CoinMarketCap site shows the history and bitcoin merchant account quotation of more than a thousand cryptocurrencies. But a more rigorous inspection makes it clear that those who really have a successful performance are a handful: Bitcoin, Litecoin, Ethereum, Monero, and so on. What differentiates these cryptocurrencies from others is that they add some functionality, distinction or improvement to the original Bitcoin protocol. In the case of Bitcoin Cash / Gold, they were born from a difficulty in the original Bitcoin programming that has a limited space for each block which makes transactions more difficult and expensive, but provides a lot of security and promotes democratic and decentralized control. If users prefer each other it is a purely market issue.
Can you Create the Next Bitcoin?
To experiment with a new cryptocurrency, if you have little experience with programming and cryptography, it is more advisable to think that it can be “on top” of Ethereum, which is a platform on which it is possible to build any application that uses the blockchain. You can have a regionally anchored value proposition or solve a specific problem by taking advantage of Blockchain technology without reinventing the wheel and competing with Bitcoin.
Creating an alternative cryptocurrency requires thinking about complex properties, but that are both novel and add value. This is a small sample listing:
Blocking time, that is the average target time between the analysis of each block of the Blockchain. A delay time of difficulty: this is important, otherwise it could cause a serious installation problem. What is the initial currency per block? People set it from 2 to 100, usually and it changes a lot the way cryptocurrency is minted. Halving, or the event that increases the difficulty of mining, which can be months or years.
Creating a cryptocurrency bitcoin merchant account from scratch is a great software engineering project that requires a lot of experience in cryptography. Most “new” cryptocurrencies are actually cloning of the Bitcoin source code with some changes implemented in the upper layers. One or two (for example, Ethereum) are rewrites. Even a Bitcoin clone is not a simple project at all.