A cryptocurrency (or crypto currency) is a digital asset designed to work as a medium of exchange that uses cryptography to secure its transactions, to control the creation of additional units, and to verify the transfer of assets.
Bitcoin, created in 2009, was the first decentralised cryptocurrency. Since then, numerous cryptocurrencies have been created. These are frequently called altcoins (alternative cryptocurrencies) as a blend of Bitcoin alternative. Bitcoin and its derivatives use decentralised control as opposed to centralised electronic money or central banking systems. The decentralised control is related to the use of Bitcoin’s blockchain transaction database in the role of a distributed ledger.
Mining cryptocurrencies has become highly profitable as the popularity of the market continues to rise. In order to mine profitably, you need to invest in high calibre computer components on a large scale while making sure your electricity costs do not erode your profits. Being able to acquire discounted computer components from wholesale suppliers is highly advantageous in bringing down costs. Through its network, Viderium has access to these discounts and efficient delivery.
Viderium mines up to five different crypto coins at any given time and targets those which provide the most value short and long term. Rotterdam is the location of its initial mining facilities, which is due to low energy costs and strategic partner placing. Initially, Viderium’s focus will be on expanding its current facility to maximise profits. In Q1 of 2019 it plans on expanding its operations into Iceland, which provides the best crypto mining environment in Europe. Land and electricity are cost-effective and the naturally cool temperatures are ideal for mining in a cost efficient manner.
It has been suggested by many in the crypto community that 2018 is a year for further growth with an anticipated market cap of $2tn predicted by the end of 2018. It is also anticipated that 2018 will be the year that central banks will finally start to purchase and hold cryptocurrencies. With recent news that Goldman Sachs is setting up a crypto trading desk, it certainly gives this notion credence and other banks are experimenting with blockchain technology. Twenty-eight banks from around the world are currently participating in a SWIFT-driven blockchain proof of concept to determine if they can use it to settle cross border transactions.
There are several changes coming towards retailers as well, who will begin to pay more attention to cryptocurrencies in the coming year, offering significant opportunities for further expansion of crypto. Cryptocurrencies have the potential to solve some real problems in the consumer financial world, especially when high transaction costs are involved with “traditional” payment methods. One of the reasons why Bitcoin and other cryptocurrencies are in demand is because they offer an opportunity to bypass “expensive” forms of payment while cryptocurrencies keep their transactions cheap. A number of companies have already connected their digital currency wallets to a Visa wallet and some retailers are accepting cryptocurrencies as forms of payment. The trend is set to rise significantly in coming months, as more companies offering goods and services recognise the importance of integrating crypto into their payment methods.
Part of the value of the technology that makes blockchain so attractive as a currency is that it makes counterfeiting very hard. Blockchain makes it possible for every legitimate touch in a supply chain – from a supplier to a manufacturer to a shipper – to add a verifiable record to an item’s pedigree. This is important for two main reasons: blockchain assures the authenticity of unique goods, making it harder to pass counterfeit products as genuine; and it allows to record every touchpoint in the lifespan of a product as it moves through the supply chain, which ensures consumer confidence in the market.
With the increased demand for cryptos, Viderium is in a prime position to yield large profits from the production and sale of these units.