Bubble or gold? Bitcoin fever in Ukraine

Пузырь или золото? Биткоин-лихорадка в Украине

The exchange rate of bitcoin is not regulated by anyone

The Ukrainians are buying video cards to create a mining-farm to earn cryptocurrency.

In June, the Ukrainians were interested in cryptocurrencies, but not only in connection with a cyber attack virus Petya that require bitcoins.

For the past month in Ukraine and around the world, recorded a significant shortage of video cards, which are used for mining cryptocurrency – receiving remuneration from the parties to the transaction for predostavlenie its capacity.

Bitcoin in the media appear more and more often, but most of the virtual currency associated with the financial pyramid and illegal transactions in the vastness of the darknet. In Japan, however, bitcoin is legal tender.

Корреспондент.net decided to find out what cryptocurrency is, what determines its course and why it is needed.


Cryptocurrency and how?

There are already about thousands of cryptocurrencies, and bitcoin (Bitcoin) is the most popular among them. Capitalization of bitcoin is 40 percent of the total market is $ 42 billion. While last year the figure was 90 percent.

The popularity of bitcoin can be explained by the fact that it is the first currency of its kind. He provoked the appearance of a huge number of analogues that exist at the moment.

Пузырь или золото? Биткоин-лихорадка в Украине
A rating of the cryptocurrency: the ten most popularn

The basis of bitcoin is the principle of decentralization – concept, when the currency is owned or controlled by any financial or any other institution. It called for decentralization a key feature of bitcoin.

Cryptocurrencies are working on the system blockchain (Blockchain), a blockchain transaction when all information is stored on multiple computers connected by Internet.

The whole transaction history in the blockchain is open to all members of the system and is invariant. Its users remain anonymous and have equal status.

The blockchain can be represented in the form of books of account records in a digital world, the only way to change the state of registry which is to make a transaction.

In this case the entries in the transaction log may be amended only with the consent of a majority of the members of the network.

An important feature of the transaction log, the blockchain is its immutability. This property means that it is impossible to quietly remove the transaction from the log or add a new one in the middle of it.

Therefore, transactions on the blockchain are transparency, speed and low cost.

Mine cryptocurrency – so, to confirm transactions in the blockchain and get rewarded for it from the system and parties to the transaction.

In order to do this, you will need a powerful computer equipment. For bitcoin use special chips for other cryptocurrency – video.

Graphics card for mining-farm

To build your mining farm, you need to buy multiple graphics cards (the more the better) to link them into a single computing system and connect it to the blockchain that runs the cryptocurrency.

As a reward for providing their facilities for the calculations, the miner receives a certain amount of cryptocurrencies. For example, a farm of four good cards can bring per day to 0.01 bitcoin.


Will replace gold? What determines the exchange rate of bitcoin

Quote of the bitcoin depends solely on the balance of supply and demand, it is not regulated by anyone.

From 2009 to April 2010, bitcoins were only accumulated. 25 APR 2010 the first official sale of one thousand bitcoins at 0.3 per cent. In February 2011 bitcoin started to give about a dollar. By the end of June 2011 the price reached 29.57 USD.

Since the value of bitcoin grows, periodicheski experiencing periods of decline. 12 June 2017, bitcoins reached a peak of three thousand dollars, and last week fell to two thousand.

Last week most altcoins fell in price. This week there is a tendency to increase.

Investment Bank Goldman Sachs recently released a report which says that the exchange rate of bitcoin in the near future is likely to fall by 25 percent – to about $ 1850, but by the end of the year to grow by up to four thousand dollars.

Some analysts believe that bitcoin may overtake gold in importance in the market. For example, managing partner and head of research at Fundstrat Global Advisors Tom Lee told Bloomberg that bitcoin can replace gold, which is considered a “safe haven” for investors.

The value of gold is relatively static against the growth of bitcoin, he said.

“In our view, this is a game changer, enhancing the legitimacy of the currency and, probably, accelerate the substitution of gold,” added Lee.

Bitcoin has the main qualities of gold – their number is limited (about 21 million). Bitcoins are performing transactions faster and cheaper than banks, which charge a fee, limit the amount and so on.

However, not all believe in cryptocurrency. For example, billionaire mark Cuban believes its economic bubble.

“I think it’s a bubble. I just don’t know when and how much it will be corrected. But when all bragging about how easily they manage to make money is a bubble,” wrote the billionaire in his Twitter.


Cryptocurrency in Ukraine

Around the world have started a real gold rush, which hurt, and Ukraine. People are buying graphics cards, and to create a special farm, as described above.

In June, the media wrote about the shortage of video cards on the shelves of Ukrainian due to the growth of popularnosti mining-farms. On the online platform you can find a lot of offers on these devices.

Пузырь или золото? Биткоин-лихорадка в Украине
The Internet offer to purchase a mining-farm to earn cryptocurrency

If you spend on the farm, about a million hryvnia, then she can bring the owner up to $ 150 per day if the course of bitcoin will not fall.

One of the most popular applications of crypto – trade on the darknet. Anonymous sites available through the Tor browser, allow you to buy and sell the cryptocurrency for illicit goods and services – drugs, guns, fake documents.

Most Ukrainian drug traffickers, according to media reports, in darknet accept payments in bitcoin. However, this currency is not suitable for small purchases – for example, when buying in the amount of six dollars, the Commission will be not less than one dollar.

At the end of April in Ukraine, has installed the first ATM for the cryptocurrency exchanges. The term in Odessa takes 100, 200 and 500 hryvnias upon purchase of bitcoins. When you reverse the sales amount is given in multiples of 500 hryvnia.

Planned pajuniemi ten cryptomate in Kiev in July of this year.


Uncertain future

The future of bitcoin is not defined – a currency split on two independent systems is scheduled for August 1, only then it becomes clear what part of the bitcoin community will support it.

Some miners have revised their business plans and have started to sell the farm, bought at the peak rate.

However, the bitcoin community are optimistic. Despite the problems of bitcoin, the idea of a global decentralized currency looks very attractive. Now exchange cryptocurrency has attracted thousands of speculators, and it hurts the image of technology.

Some market participants believe that sooner or later the bubble will burst cryptocurrency. Others predict that by 2020, one bitcoin will cost over 30 thousand dollars.