CryptoCurrency Can we do it?

Overview of the Presentation What are cryptocurrencies? What are terms we should know? How are cryptocurrencies mined? How are they listed on an exchange for trading? Introducing SurprizeCoin Funding Opportunities

Mining Terms – Hash and Hash Rate Hash Rate – A Hash is the mathematical problem the miner’s computer needs to solve. The Hash Rate is the rate at which these problems are being solved. The more miners that join the Bitcoin network, the higher the network Hash Rate is. The Hash Rate can also refer to your miner’s performance. Today Bitcoin miners (those super powerful computers talked about in the video) come with different Hash Rates. Miners’ performance is measured in MH/s (Mega hash per second), GH/s (Giga hash / per second), TH/s (Terra hash per second) and even PH/s (Peta hash per second). https://99bitcoins.com/bitcoin-mining-profitable-beginners-explanation/

Mining Terms – Bitcoins per Block Bitcoins per Block – Each time a mathematical problem is solved, a constant amount of Bitcoins are created. The number of Bitcoins generated per block starts at 50 and is halved every 210,000 blocks (about four years). The current number of Bitcoins awarded per block is 25. However soon enough the block halving will occur and the reward will be downgraded to only 12.5 Bitcoins.

Bitcoin Difficulty – Since the Bitcoin network is designed to produce a constant amount of Bitcoins every 10 minutes, the difficulty of solving the mathematical problems has to increase in order to adjust to the network’s Hash Rate increase. Basically this means that the more miners that join, the harder it gets to actually mine Bitcoins.

Electricity Rate – Operating a Bitcoin miner consumes a lot of electricity. You’ll need to find out your electricity rate in order to calculate profitability. This can usually be found on your monthly electricity bill. Power consumption – Each miner consumes a different amount of energy. Make sure to find out the exact power consumption of your miner before calculating profitability. This can be found easily with a quick search on the Internet or through this list. Power consumption is measured is Watts. Time Frame – When calculating if Bitcoin mining is profitable you’ll have to define a time frame to relate to. Since the more time you mine, the more Bitcoins you’ll earn.

Profitability decline per year – This is probably the most important and illusive variable of them all. The idea is that since no one can actually predict the rate of miners joining the network no one can also predict how difficult it will be to mine in 6 weeks, 6 months or 6 years from now. This is one of the two reasons no one will ever be able to answer you once and for all “is Bitcoin mining profitable ?”. The second reason is the conversion rate. In the case below, you can inset an annual profitability decline factor that will help you estimate the growing difficulty. Conversion rate – Since no one knows what the BTC/USD exchange rate will be in the future it’s hard to predict if Bitcoin mining will be profitable. If you’re into mining in order to accumulate Bitcoins only then this doesn’t need to bother you. But if you are planning to convert these Bitcoins in the future to any other currency this factor will have a major impact of course.

Types of Mining CPU – The original type. GPU – The 2nd generation. Mining performed by the CPU. GPU – The 2nd generation. Mining performed by the GPU – A high end graphics / video card. ASICs – The 3rd generation. Mining performed by specially designed and programmed chips (Application Specific Integrated Circuit). The Most Expensive. Pool Mining Pool fees – A mining pool is a group of miners that join together in order to mine more effectively. The platform that brings them together is called a mining pool and it deducts some sort of a fee in order to maintain its operations. Once the pool manages to mine Bitcoins, the profits are divided between the pool members depending on how much work each miner has done (i.e. their miner’s hash rate).

Is Small Scale Mining Profitable? “Bitcoin mining is profitable, but it is hard to keep it that way.  I run a small mine as an educational hobby in my garage.  Using equipment purchased in 2014, I am currently running at 6,106 GH/s.  This means on average I mine 0.04239493 BTC per day, using 5,442 watts of power.  My marginal electricity cost is USD $0.1152 per kWh, so at the current (at the moment) bitcoin price of $354.51, I am making a profit of $0.01 per day.  The reason I call it an educational hobby, however, is that the total return on the project since September, 2013, is -31.8 percent if I turned everything into dollars today.  I keep the bitcoin I mine in bitcoin, because only an increase in the value of bitcoin could make the project profitable overall.  My expenses so far are 71% equipment and 29% electricity, but of course that puts no value on the (large) amount of time I spent working on this.  I've learned an amazing amount about bitcoin in the process, so I consider it a win either way. (https://www.quora.com/Is-Bitcoin- mining-still-profitable-in-2016)

Pool Mining – Cashing Out Profits A 4,000 GH/s hash rate is expected to produce $110/month, or $1,300 per year. Scaling up, at 30,000 GH/s, the income is expected to $825/month, or $9,900 per year, enough to cover most of a mortgage payment. The 30,000 GH/s at $.1/(GH/S) would cost $3,000 (~ the cost of a mining computer). Eventually all coins will be mined, so the income does not last forever. But, what will the price of bitcoin (monthly income) be at that time? Don’t forget to sell your mining equipment, or switch to the next upcoing ‘BitCoin’.

Pool Mining – Reinvesting Profits A 4,000 GH/s hash rate is expected to take the account value to $11,000 after a year. By reinvesting, the ‘profit’ is not in bitcoin, but rather in computing power. The computing power can be sold at a price you ask. Of course, you might not find a buyer at your price. If the company goes under, your ‘profit’ is lost! https://mine.splititmining.com/#/ calculator

Getting the Coin Listed on an Exchange It appears to be an easy task. The information requested is listed to the right. What is the ‘listing payment’? https://c-cex.com/

Introducing: Surprize Coin A Cryptocurrency with an accompany website that only accepts SurprizeCoin ($C). To give the currency ‘value’, SurprizeCoin.com is a site that sells items. Surprize Coin

Giving the Currency Value First post on Web Site: A 1 oz silver bar Cost of bar plus expenses: $20 Current SurprizeCoin mintage: 10 million Sell the bar for 100,000 $C = $20, which establishes a value of 0.02 cents / $C. Our 8,888,888 coins now have a value of $1,777 – People are willing to spend 100,000 $C for $20. Values are determined “at the margin” (What was the last transaction worth?).

How Difficult Is It to Mine 100,000 $C? Mining become exponentially harder as coins mined increase and as time passes. Mining is easiest at the start. Let’s stat the clock now … Block settings are currently at 1000 $C per correct solution. CPU Mining causes CPU usage to go to #100%.

How Difficult Is It to Mine 100,000 $C?

How Difficult Is It to Mine 100,000 $C? The time to mine 100,000 $C was ~3600 seconds. Assume that current mining hardware is 1000 times faster than my pc, which equates to 4 seconds at the block reward of 1000 (remember this reward halves at a specific rate). This implies that if a serious miner goes prospecting that he will acquire a significant amount of coins in a short time. This further implies that our price for a bar of silver in $C will need to rise just as quickly as the total supply of coins increases. We will get a gauge on this supply by how fast a bar sells. Note that is highly probable that we might be able to inquiry the crypto as to how many shares have been mined.

Giving the Currency Value Assume the 8,888,888 coins we own now have a value of $1,777: Our $20 investment has returned $1,757! SurprizeCoin can be converted to $ via Bitcoin. This money can then be used to purchase more silver (up to 88 more ounces) to post on the site. Repeat the process – And raise the $C price of the silver as for the inflation of the supply. The cost of the silver bars (or other items we sell) is the investment we make to cause the cryptocurrency to be mined, circulated, saved, and spent.

Giving the Currency MORE Value In the future, perhaps the user can list his own items (sub- stores)?

Online Stores What does it take/cost to have CoinPayments host SurprizeCoin?

Online Stores – Open Source? I have not found an Open Source store. Would have to either build our own server or pay for server services.

Online Stores - Yola Yola Store is the cheapest that I’ve found. www.GiftsNotTips.com Checking if Yola takes manual payments.

Online Store - Wix Wix has a manual payment method where instructions can be given to send SurprizeCoins to a wallet address. GiftsNotTips.wixsite.com/SurprizeCoins

Online Store – WebNode

Online Stores - WebNode

Online Auction Sites Rather than a store, what about an Auction site? These sites seem to be more expensive than online stores.

QT Application Development Gee, I thought QT was free? No, it’s $960 a year. Cheaper to contract CryptoLDev?

Business Upfront Investment Items need are: An Android Wallet (1.5 bitcoin, ~$3,000) Rebranding GiftCoins to SurprizeCoin ($2,000) A store that takes payment in $C. (? Up front, ?/month upkeep) A currency exchange listing fee (?). Initial ‘feed’ items to kick-start the website (?) Accounting (?/month) Tax Preparation (?/year) Attorney Review of Plan (?) A website domain ($15/yr)

Possible Funding Opportunities

Leads Youngevity downline (450 email addresses) Steemit community

Crypto Currency Training Classes Less than 1% of americans haver heard of BitCoint – Never mind how to buy them! Localbitcoins.com

Objective Our objective is: To get people to accept the currency and hence raise its value. Not to sell items.