In this article we will review Zcash cloud mining. We will explain what Zcash cloud mining is, where to find trusted cloud mining companies for Zcash, if there is any free Zcash cloud mining, Zcash cloud mining profitability and much more. We will cover these subheadings.
- What is Zcash Cloud Mining?
- What trusted sites do Zcash offer Cloud Mining contracts?
- Is there free Zcash Cloud Mining?
- Zcash Cloud Mining Contracts
- Zcash Cloud Mining Profitability
- Zcash Mining Algorithm
- Zcash cloud mining on Reddit
- Zcash Cloud Mining US Bitcoin Cloud Mining
- Best Zcash Cloud Mining Site
What is Zcash Cloud Mining?
Zcash cloud mining means that you buy or rent equipment from a company that operates and maintains the mining equipment for you. You get your mining reward and the company either takes part of your mining reward or a cost upfront to run and maintain the equipment.
What trusted sites do Zcash Cloud Mining offer?
The only companies that have offered Zcash cloud mining are Genesis Mining and Hashflare. Both of these companies are considered legitimate among the online community.
Is there free Zcash Cloud Mining?
Minergate offers a free software that you can download and my direct Zcash directly on your computer. This is not profitable if you have a laptop but can be profitable if you have a gaming computer with good graphics card, especially if you have cheap electricity. In the screenshot below you can see when we mine Zcash with Minergate in April 2019.
Zcash Cloud Mining Contracts
Only Genesis Mining and Hashflare have offered Zcash cloud mining contracts. Genesis Mining 2-year contract with maintenance fee included. Hashflare did offer 1-year Zcash cloud mining contract with maintenance fee included.
Zcash Cloud Mining Profitability
In March 2019, there are no available Zcash cloud mining contracts to calculate profitability.
Zcash Mining Algorithm
Founder and CEO of Zcash Zooko Wilcox-O’Hearn and his team of cryptographers and researchers spent three years working on an alternative that would fix a key problem with bitcoin – privacy.
Zcash cloud mining on Reddit
ZcashMiners subreddit covers everything about Zcash mining, including cloud mining.
ZEC subreddit is about Zcash and not about cloud mining in particular.
Zcash does not exist anymore and has moved to a private community.
Link: https://www.reddit.com/r/Zcash/ moved to https://forum.zcashcommunity.com/
Zcash Cloud Mining VS Bitcoin Cloud Mining
- Zcash and Bitcoin are both Proof or Work. However, Zcash uses the Equihash algorithm, which is not compatible with ASIC equipment, a high-powered mining commonly used with bitcoin. Instead, Zcash relies on RAM requirements, making it incompatible with ASIC. This allows Zcash miners to use a more basic setup, including CPUs or GPUs, which decreases potential startup costs.
- It is more anonymous and private than Bitcoin.
- Zcash and Bitcoin mining are the same which is 12.5 units per block. However, the USD value differ between them.
- Zcash was created with a founder’s reward. Distributed to stakeholders are like investors, advisors and employees. This occurs for the first four years, and after this time, miners receive the full 100 percent of the award.
- Zcash uses a different Proof of Work than Bitcoin. Zcash’s, Equihash algorithm, relies on RAM and is not compatible with ASIC equipment which is used for Bitcoin mining. Because of this it is possible to use CPU or GPU from a personal computer to my Zcash.
Best Zcash Cloud Mining Site
There are no cloud mining contracts on the market. However, you can choose to extract Zcash with Minergate’s software.
The post Zcash Cloud Mining Review – Free Contracts, Profitability, Best Contracts appeared first on Cryptocoinzone.
No Compensation for MakerDAO Vault Owners After Governance Vote
MakerDAO vault holders who lost about $2.5 million during Black Thursday will not receive any compensation following a governance vote that ended on Tuesday. While decentralized finance (DeFi) continues to garner attention, issues like the type suffered by the MakerDAO project earlier in the year continue to plague the market as a whole.
MKR Holders Vote Against Compensating Affected Vault Owners
Following the conclusion of voting on the revised MakerDAO governance poll, vault owners affected during the Black Thursday crash of mid-March will not receive any compensation. This outcome is due to the fact that 65% of the participants voted against compensating the $2.5 million losses incurred by vault owners.
Postmortem on the @MakerDAO vault compensation poll 💀
Short recap, and my take on how we ended up with this result 🎬
— monetsupply.eth (@MonetSupply) September 22, 2020
Some reactions to the news on social media say the decision to not compensate vault owners sets a not so ideal precedent. With Maker (MKR) token holders unaffected by the forced liquidations of March 12, 2020, it appears only vault owners were the real losers.
Amid the Black Thursday panic, the crypto arena saw a massive sell-off of tokens leading to a sharp decline in price across the market. The situation mirrored the events seen in the larger investment scene as fear over the coronavirus pandemic saw investors electing to liquidate their assets for cash.
A Black Swan Event
For the MakerDAO project, Black Thursday turned out to be a ‘black swan’ event. As the price of Ethereum (ETH) fell on that fateful Thursday, the network suffered massive congestion which prevented price oracles from updating ETH/USD price in real-time.
With the price oracles failing, undercollateralized vault owners suffered forced liquidations. Some users took advantage of the situation to launch opportunistic profiteering attacks with zero bid and half bids. These rogue actors were able to liquidate ETH from vault owners with little or no DAI given in collateral.
MakerDAO lost $6.65 million in DAI stablecoin during the incident with $4 million of this shortfall being actual “bad debt” for the project. The DeFi lending project was able to service the bad debt via debt auction a few weeks later.
In the aftermath of the forced liquidations on Black Thursday, some affected vault owners sued the Maker Foundation for not providing adequate information about the risks involved in holding collateralized debt positions (CDP).
Synthetix’s founder: crypto and DeFi still in the earliest inning of its next growth cycle
As Bitcoin and especially Ethereum’s DeFi ecosystem has drawn down from its recent highs, analysts have been left wondering what phase of the market cycle are cryptocurrencies in. Is this the early innings of a bull market or the start of another bear trend?
According to Kain Warwick, the founder of Synthetix and a long-time crypto market participant (since 2012), ongoing price action and fundamental trends suggest we’re still in 2016.
That’s to say, cryptocurrencies have a lot further to grow in the coming years.
We’re in 2016, not 2017: Synthetix founder and long-time crypto bull
Warwick explained that having lived through two previous crypto cycles, he thinks that the industry’s current situation is analogous to 2016, which was the “calm before the 2017 storm,” so to say:
“I’ve been trying to work out if we were in 2016 or 2017 for the last 6 months. This last week firmly put me in the 2016 camp. It’s actually shocking how similar human reactions are to the same stimuli. After the dump in July 2016 I could not convince anyone to buy BTC @ $500…”
I’ve been trying to work out if we were in 2016 or 2017 for the last 6 months. This last week firmly put me in the 2016 camp. It’s actually shocking how similar human reactions are to the same stimuli. After the dump in July 2016 I could not convince anyone to buy BTC @ $500…
— kain.eth (@kaiynne) September 22, 2020
The main reason why he thinks so is that after the recent strong decline in Bitcoin, then in top altcoins including his own SNX, there are few looking to buy the dip.
He expanded on his thoughts on the current situation in the crypto market in a post published to the Synthetix site.
Warwick commented that right now, DeFi is a “total clusterf**k” in a good-bad kind of way:
“So many things are happening simultaneously that it is impossible to track the potential consequences of all of them let alone the combined consequences of stitching them all together.
Thus you get the challenges for the DAI peg, and weird volume spikes across the DEX landscape due to shifting protocol incentives, and high yields on specific DeFi tokens on lending protocols.”
He also mentioned how builders in the crypto ecosystem now must acknowledge that the decisions they make affect the rest of the DeFi ecosystem, meaning there needs to be a concerted effort amongst all teams to work together to better products.
Start of a parabolic crypto growth cycle
While crypto’s recent price action has been slow to say the very least, going off of Warwick’s comments and those of other top commentators, a parabolic growth trend is to follow.
Chris Burniske, a partner at Placeholder Capital, recently commented that he thinks that Ethereum will reach a market capitalization of $1 trillion this market cycle:
“Meanwhile, to the mainstream $ETH will be the new kid on the block — expect a frenzy to go with that realization. Given $ETH’s outperformance of $BTC over its lifetime (chart below again), not to mention smaller network value and strong on-chain economies, I see every reason for $ETHBTC to surpass ATHs.”
Other commentators have made similar comments about Bitcoin, remarking that the likelihood the coin undergoes another exponential growth trend in this market cycle is likely.
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Bears reign as 86% of September’s $284M CME Bitcoin options are worthless
As of now, the $622 million total open interest for BTC futures expiry on Friday seems quite relevant.
This Friday, a total of $100 million in CME Bitcoin (BTC) options are set to expire. 58% of these are call (buy) options, meaning buyers can acquire BTC futures at a fixed price.
As the expiry draws near, call options 10% or higher above the current BTC price are deemed worthless. Therefore, there’s not much to gain in rolling over this position for October.
September CME call options open interest (contracts). Source: CME
Each CME contract represents 5 BTC, and the chart above shows which are the most significant levels for September call options.
Note that a striking 86% of those are set at $11,300 and above. Hence those options are currently priced at $10 or less.
This means there will be less pressure coming from the CME options expiry, with $8 million call options open interest ranging from $10K to $11K.
On the other hand, put options between the same range amount to $12 million in open interest. As both call and put options are relatively balanced, the overall impact should be little to none. Therefore, one must check the remaining exchanges to analyze the options expiry impact.
As the options markets leader, Deribit, holds a 75% share, equating to $554 million worth of open interest in BTC options set to expire this Friday. This figure is evenly distributed between call (buy) and put (sell) options.
Deribit September BTC options open interest. Source: Deribit
Unlike CME, Deribit traders have been more modest as only 70% of the call options open interest for September sits at $11,250 and above. As for the ones ranging from $10K to $11K, there’s $74 million in call options stacked against $110 million in put options.
Although the Deribit number is far more significant than the CME’s, the $26 million imbalance does not seem relevant considering the underlying $2 billion in BTC daily volume.
Futures expire, but there can’t be an imbalance
Futures contracts are a completely different instrument from options, as buyers and sellers must be evenly matched at all times.
Although every contract is similar, perpetual futures (inverse swaps) do not expire. They are simply rebalanced every 8 hours, which means there is no impact on expiry dates.
On the other hand, some derivatives exchanges offer regular futures contracts with monthly expiry. Unlike options markets, these traders can keep their positions open by rolling over ahead of expiry.
CME has $284 million worth of BTC futures set to mature on Friday, although this figure should be reduced as traders move positions to October and November contracts.
OKEx leads the remaining exchanges with $147 million, while Deribit has $73 million, Huobi $63 million, and BitMEX holds $46 million.
As of now, the $622 million total open interest for BTC futures expiry on Friday seems quite relevant, considering spot (regular) exchanges maintain $2 billion in daily volume.
Friday’s CME expiry no longer poses a threat
During most of 2018 and 2019, there has been a pretty consistent Bitcoin price drop ahead of each monthly CME expiry. A more recent Cointelegraph study has shown that since October 2019, these such movements ceased to exist.
To further disprove the CME negative price impact theory, let’s look at the last three expiries.
BTC price in USD. Source: TradingView
June was the only month where a 2% negative performance preceded the contract expiry. Meanwhile, both July and August presented positive returns, therefore invalidating any negative expectations.
The above data shows traders should be less worried about CME expiry, as it does not seem to have produced a significant impact in the previous months. Most likely the high correlation with the S&P 500 has been the primary reason behind the CME’s decaying influence.
As for the 86% of worthless CME call options, those buyers will most likely have less appetite for the upcoming exposure. Therefore, overall sentiment from Friday is likely to have a negative impact going forward.
Both OKEx and Deribit weekly contracts mature September 25 at 8:00 AM (UTC). Later on that day, CME futures are set to expire at 3:00 PM (UTC).
The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph. Every investment and trading move involves risk. You should conduct your own research when making a decision.
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