In the intricate world of cryptocurrency, not all algorithms are forged equal. The proof-of-work (PoW) consensus algorithms like Kheavyhash, Scrypt, Blake3, SHA-256, and Ethash are the linchpins that not only secure but also empower the blockchain with the integrity and trust that underpin several of today’s leading digital currencies. Understanding Proof-of-Work and Its Variants Proof-of-work […]
Bitcoin News
AI Hype: CFTC Urges Investors to be Wary of AI-Created Crypto-Asset Arbitrage Algorithms
The Commodities Futures Trading Commission has urged investors to be wary of artificial intelligence-created algorithms which promise dubious returns on crypto asset investments. The commission said investors should conduct background research on the companies or individuals who offer such AI-created trading algorithms.
Scammers Use Social Media and Influencers to Spread False Information
The Commodity Futures Trading Commission (CFTC) has cautioned investors to be wary of artificial intelligence (AI) created software or algorithms that “yield 100 per cent ‘win’ rates.” The CFTC has identified crypto-asset trading schemes, trade signal strategies, or automated trading algorithms as some of the AI-created software which scammers are using to target investors.
In a statement issued through the CFTC’s Office of Customer Education and Outreach (OCEO), the commission also voiced its concerns over the growing number of cases in which criminals use the AI hype to steal from unsuspecting users.
According to the statement, this problem is further compounded by scammers’ spread of false information via social media platforms and through the so-called influencers. Unlike conventional media or advertising firms, influencers and social media platforms are not subject to regular marketing or advertisement rules. The statement nevertheless lists some steps investors should always take before committing their funds.
Importance Background Research
One such step is doing background research on a company or trader that is promising an AI-based investing or trading bot. Investors can also research the trading history of the company selling the AI-created algorithms. Furthermore, investors should also consider getting a second opinion as well as understanding the risks involved.
Remaking on why her office issued the advisory, OCEO Director Melanie Devoe, said:
When it comes to AI, this advisory is telling investors, ‘Be wary of the hype.’ Unfortunately, AI has become another avenue for bad actors to defraud unsuspecting investors.
In addition to warning investors about investment schemes or promotions that offer above-average or guaranteed returns, the OCEO advisory also helps investors identify and avoid potential scams. The advisory also reminds investors that no tool or technology, including AI, can predict the future.
What are your thoughts on this story? Let us know what you think in the comments section below.
Mining Digital Gold — These Are the Most Profitable Proof-of-Work Algorithms in 2024
In September 2022, Bitcoin’s SHA256 algorithm ranked as the seventh most lucrative proof-of-work (PoW) network for mining. Fast forward a year and four months, and this algorithm has ascended to become the third most profitable crypto network for mining operations.
2022 to 2024 Sees Significant Shifts in Crypto Mining Profitability
As of January 2024, the ranking of the most profitable crypto networks for mining has evolved from what it was in 2022. Back in September 2022, Kadena stood at the forefront as the leading mineable proof-of-work (PoW) algorithm, enabling miners to extract kadena (KDA). However, today, the top spot for the most lucrative PoW network for mining is held by kaspa (KAS), which utilizes the Kheavyhash algorithm.
On Sunday, Jan. 21, mining with 9.2 terahash per second (TH/s) of Kheavyhash hashpower is reported to yield roughly per day, based on current data from asicminervalue.com. This includes the daily electricity expense rate of .12 per kilowatt hour (kWh). Currently, Bitcoin’s SHA256 occupies the second spot in terms of profitability, yet the recent surge in grin (GRIN) values has elevated the Cuckatoo32 algorithm in terms of earnings.
Operating under the same electrical cost of .12 per kWh, a miner with a capacity of 36 graphs per second (GPS) can achieve a daily profit of .29 mining GRIN. Following closely is the SHA256 algorithm of Bitcoin, where machines with hashpower ranging from 335 to 390 terahash per second (TH/s) could yield daily earnings of .60 to .52, assuming an electricity rate of .12 per kWh. The leading producers of these high hashrate-producing devices are Bitmain and Microbt.
In 2024, the next two most profitable mining algorithms are Ethash and Blake2B-Sia. Ethash is linked with cryptocurrencies such as ethereum classic (ETC), while miners capable of handling Blake2B-Sia can extract siacoin (SC) and scprime (SCP). An Ethash hashrate of nearly 6 gigahash per second (GH/s) is estimated to yield around .40 daily, whereas 17 terahash per second (TH/s) of Blake2B-Sia mining power can generate about .27 each day, factoring in electricity costs of .12 per kilowatt hour (kWh).
Following Blake2B-Sia in the profitability ranking are the algorithms X11 and Kadena. X11 mineable currencies, including dash (DASH) and cannabiscoin (CANN), can yield a decent return with the right hashrate. Specifically, nearly 2 terahash per second (TH/s) of X11 hashrate is estimated to generate about .57 daily. As previously mentioned, the Kadena algorithm has dropped in the ranking, but a substantial 177 TH/s of Kadena hashrate can still produce an estimated .47 per day.
Interestingly, the profitability of Scrypt mining has diminished compared to its peak in September 2022. Scrypt, which mines litecoin (LTC) and dogecoin (DOGE), was the second most profitable consensus algorithm at that time. Today, Scrypt mining ranks as the 12th most profitable algorithm, trailing behind others such as Handshake, 2, Randomx, and Cryptonightr. Ethash previously held a dominant position in mining algorithms before the Ethereum upgrade, known as The Merge, which occurred on Sept. 15, 2022. Since that pivotal event, its profitability has been relatively lackluster.
What do you think about the top mineable consensus algorithms? Let us know what you think about this subject in the comments section below.
ASIC Heavyweights: These Are the Most Profitable Proof-of-Work Algorithms in 2023
Eight months ago, there was a significant transformation in the realm of lucrative proof-of-work (PoW) mining algorithms when Ethereum made the transition from PoW to proof-of-stake (PoS). During that period, the prevailing consensus algorithms for mining were Kadena, Scrypt, and Cuckatoo32. However, the landscape has evolved, and presently, the most profitable consensus algorithms for mining encompass Kheavyhash, Scrypt, and Eaglesong.
The Evolving Landscape of Profitable Proof-of-Work Algorithms
While mining bitcoin (BTC) remains a profitable venture, it is not the foremost crypto asset for maximizing profitability in 2023. As of May 23, 2023, bitcoin ranks fifth among the most profitable cryptocurrencies to mine this year, while several other digital assets promise higher returns.
At the height of mining profitability stands a lesser-known PoW token named kaspa (KAS). Currently, KAS can be mined employing a graphics processing unit (GPU) utilizing the Kheavyhash algorithm. However, Bitmain has developed an application-specific integrated circuit (ASIC) specifically designed for mining KAS.
According to information provided on Bitmain’s website, the availability of Bitmain’s KAS Miner KS3 to the general public is scheduled for August and September 2023. Archived data from asicminervalue.com as of May 23 suggests that if the KS3 were accessible at present, it would generate an estimated daily profit of ,045, assuming electricity costs of .12 per kilowatt hour (kWh).
The KS3 boasts a hashpower of 8,300 gigahash per second (GH/s) or 8.3 terahash per second (TH/s) specifically designed for the Kheavyhash algorithm. Upon its release, each unit of the miner will be priced at ,800, as indicated by Bitmain’s shop.
Following KAS, the next noteworthy consensus algorithm in terms of profitability is Scrypt, which enables individuals to mine cryptocurrencies such as dogecoin (DOGE) and litecoin (LTC), along with various other crypto assets, utilizing a Scrypt-compatible ASIC device. Bitmain offers a range of machines that are part of the Antminer L7 series, initially introduced in 2021 and subsequently expanded in 2022.
As of May 23, an L7 device boasting a hashpower of 9.5 gigahash per second (GH/s) is estimated to generate a daily profit of .66. It’s worth noting that, at the time of writing, Bitmain’s L7 units are priced at ,550 per device; however, they are currently sold out.
Among the highly profitable crypto miners, the Antminer K7, an Eaglesong-compatible ASIC, stands out with hashpower of around 63.5 terahash per second (TH/s). Currently, the K7 miner is sold out, but it is listed with a price of ,748 per unit on Bitmain’s sold-out filter. This particular Antminer is designed exclusively for mining the relatively lesser-known crypto asset called nervos (CKB).
Based on current exchange rates, it is estimated that the K7 miner can generate daily profits of approximately .70. Moving forward, the Kadena consensus algorithm is noteworthy, specifically utilized for mining the crypto asset known as kadena (KDA). Once again, Bitmain takes the lead as the manufacturer of the most profitable mining rig for KDA.
With a hashpower of 166 terahash per second (TH/s), the Antminer KA3, compatible with Kadena, is a notable mining device. Considering the current exchange rates for KDA, this machine is projected to generate approximately .79 per day in profits. Moving on to the fifth most profitable consensus algorithm for ASIC mining, we have the SHA256 algorithm.
The Bitmain Antminer S19 XP Hydro model offers hashpower of around 255 TH/s. When factoring in electricity costs of .12 per kilowatt hour (kWh) on May 23, the S19 XP Hydro is estimated to yield around .79 per day in profits. Currently, it is the most profitable BTC miner on the market, but a rival is on the way. Microbt’s Whatsminer M53S++ claims to produce 320 TH/s, which is 65 TH/s greater than Bitmain’s Antminer S19 XP Hydro. At the time of writing, the Whatsminer M53S++ is currently not available for purchase.
The values of crypto assets are subject to constant fluctuations, and the profitability landscape has undergone substantial changes since our news desk last reported on this subject eight months ago. As previously mentioned, a KDA-compatible KA3 miner currently generates an estimated .79 per day in profits. However, 248 days ago, this same machine was yielding a much higher profit of .41 per day, assuming electricity costs of .12 per kilowatt hour (kWh).
This exemplifies how the profitability of mining rigs can significantly vary over time. By the time Bitmain’s KAS Miner KS3 is shipped, the daily profit may be considerably lower than the current estimate. This pattern holds true for all mining rigs ever created, as there have been instances when these machines were highly efficient and profitable, only to be rendered obsolete by either superior machines or volatile crypto prices.
What are your thoughts on the ever-changing landscape of profitable proof-of-work algorithms and the dominance of ASIC heavyweights in the mining industry? Share your insights and opinions in the comments section below.
How Algorithms Can Assist with Bitcoin Mining
Bitcoin and other cryptocurrencies have come a long way in a short span of time. The value of bitcoin in 2011 was just .06 and had virtually no takers. Fast forward to the present day and the very cryptocurrency now enjoys five-figure values as industries and governments grow accustomed to its use to pay for goods and services.
There are now 16 million bitcoin tokens in existence. The amount of bitcoin tokens allowed to exist at any one time has been hard-wired to be capped at 21 million, so time is running out if you want to get involved in mining. This cap was written into bitcoin’s source code as a means of guarding against future inflation. Cryptocurrencies are by nature decentralized and designed to be pro-libertarian and anti-quantitative easing.
Bitcoin cannot exist without mining. Mining is the process of interacting with the blockchain and completing a string of complex cryptographic calculations, comprising combinations of numbers and letters. Bitcoin miners utilize cryptographic algorithms that are extremely hard to reverse-engineer, but easy to verify the output. Miners have to ‘earn’ their bitcoin tokens. Every ten minutes or so, bitcoin blocks are released into the world. Miners use high-powered mining chips and heaps of electricity to mine overnight, underpinned by impeccable network connectivity and an effective cooling system for their machines.
Algorithms help not only to regularly mine the bitcoin, they also guarantee a single transaction history for each bitcoin, avoiding any bitcoins from being spent twice. In fact, machine learning algorithms are becoming a staple component in the finance sector. A growing number of hedge funds and even retail traders in the stock market are exploring the concept of algorithmic trading strategies. These are codes that can be written to open and close trades when specific conditions occur in the market, removing human emotion from trading based on psychological factors such as greed and fear.
In the early days of bitcoin mining, miners would perform cryptographic calculations on their own computer’s CPU. The more cryptographic hashes you can perform in a second, the greater the probability a miner has of mining a new bitcoin block. But, as time has moved on, application specific integrated circuit (ASIC) miners have made it nearly impossible to use the old-school way, which is where algorithms come in. Coral Health has authored a beginner’s guide to writing your own Proof-of-Work algorithm for mining bitcoin that takes things step-by-step.
Other Uses of Algorithms in the Financial Sector
Personalized customer experiences have become increasingly important for banks in an ever-competitive industry. Machine learning algorithms are also being used to develop online chatbots that are not only capable of assisting consumers with account-related queries, they can also help you track your income and expenses. For instance, Cleo is a chatbot that even offers tips on how to improve customers’ money management to meet their savings targets.
As industries move to keep pace, artificial intelligence can make inroads in tackling new problems within the digital world. The explosion of the e-commerce space has led to a simultaneous growth of online fraud. Debit and credit card providers have been accused in the past of being too cautious with declining suspicious transactions, which is why Mastercard recently launched a new algorithm named ‘Decision Intelligence’ technology, building up a profile of consumers by evaluating all transactions to detect ones that really are out of the ordinary.
Although some consider artificial intelligence and machine learning to be in its infancy, there’s no doubt that it has already made significant strides thanks to such algorithmic approaches. There will be further ethical and socioeconomic hurdles to overcome along the way, but automation has the potential to make the future of finance way more interesting.
Image source: Pixabay
The post How Algorithms Can Assist with Bitcoin Mining appeared first on NewsBTC.
First Marketplace of Trading Algorithms Tradingene Supported by Waves to Launch ICO 16th of May
Blockchain-based platform designed to bring algorithm creators and investors together on an auction-based marketplace launches ICO. The platform will be one of the first projects to implement Waves’ smart contracts. Its TNG token baked on Waves will be available a wide range of users, both inside and outside the Waves community.
Today many large funds, institutional investors, and experienced traders use algorithmic trading: they invest using automated trading strategies that buy and sell using signals they receive from trading algorithms. This form of trading has a number of significant advantages over trading manually and provides high returns which are not presently accessible to the public trading on both cryptocurrency markets and traditional markets.
Tradingene is a blockchain-based auction platform that makes possible the creation and use of algorithms for trade cryptocurrency and the most popular financial instruments. Tradingene addresses the aforementioned problems through an accessible and advanced web platform for creating algorithms, online courses for algorithm creators, a competitive auction for algorithms and finally a blockchain-based system to increase transparency. Some trading algorithms already beat buy & hold strategy even on cryptocurrency markets.
“Tradingene will become an Uber on the algorithmic trading market,” says Daniel Wolfe, CEO. “There are a large number of inefficiencies in the algorithmic trading market. Current players have fee structures that do not motivate creators. Many platforms have a large number of ‘garbage’ and curve-fitted trading algorithms. In addition, they do not provide transparent pricing nor do they offer the opportunity to create algorithms for a wide range of markets. Tradingene solves all of these problems with a number of innovations and an entirely new ideology: the trading algorithm as investment product!”
According to the whitepaper, the project’s goals are to provide quality opportunities to retail investors who wish to invest using trading algorithms; to provide algorithm creators with opportunities to develop and test trading algorithms and attract capital; to create the conditions for maximally efficient, transparent and profitable investment in trading algorithms.
Tradingene platform investor’s personal cabinet prototype: trading robot choice
Even today Tradingene is a ready-to-use product for algorithm creators. The platform has more than 300 creators who have created over 2000 tested algorithms. Tradingene currently works with a select number of private investors.
Tradingene is one of the few companies that have an international, highly qualified team with more than 10 years trading experience and some famous financial managers, entrepreneurs and even world record holders. Its advisors are highly respected people in areas like Machine Learning (such as Tomoya Suzuki – John Brooks Award winner), Investments (such as Tim Seymour – hedge-fund manager and CNBC presenter) and Trading Algorithms (such as Dan Valcu– who holds the professional designation of a Certified Financial Technician, served on the Board of the International Federation of Technical Analysis, IFTA).
The post First Marketplace of Trading Algorithms Tradingene Supported by Waves to Launch ICO 16th of May appeared first on NewsBTC.
Oju Hospitality Group Launches ICO OjuT The Travel Coin May Rival Bitcoin Self-Invented Blockchain Technology and Proof of Stake Algorithms
Oju is the first ICO where tokens can be used to redeem goods such as travel products even before the ICO hits the exchange. OjuT Coin will enable seamless transactions worldwide, connecting the Owner to all aspects of the travel and hospitality world with one coin. Phuket, Thailand &8211 Dec 7, 2017, Oju Hospitality Group sent shockwaves through the travel and tourism industry today with the launch of a unique ICO that offers a real-worldnRead MorenThe post Oju Hospitality Group Launches IC
CryptScout #BitFeed RSS – Bitcoin and Cryptocurrency News 24/7
Complex AI Trading Algorithms Are Available Now
Financial trends were always hard to predict even by careful observers. Transparency of events is something that traders are seeking regardless of the year, though nowadays not everything can be spotted with the help of the word of mouth. Trading before and after digital revolution looks like two different phenomena. It is not a crystal … Continue reading Complex AI Trading Algorithms Are Available Now
The post Complex AI Trading Algorithms Are Available Now appeared first on NEWSBTC.
Complex AI Trading Algorithms Are Available Now
Financial trends were always hard to predict even by careful observers. Transparency of events is something that traders are seeking regardless of the year, though nowadays not everything can be spotted with the help of the word of mouth. Trading before and after digital revolution looks like two different phenomena. It is not a crystal … Continue reading Complex AI Trading Algorithms Are Available Now
The post Complex AI Trading Algorithms Are Available Now appeared first on NEWSBTC.