WEST PALM BEACH, Fla. – The cryptocurrency is taking center stage in Miami this week.
It is being dubbed the largest Bitcoin event in the world as companies and cryptocurrency enthusiasts come together to share ideas.
Cryptographic craze continues to grow with celebrities selling it and sports fields being named cryptocurrency exchange companies.
Then there are people like 24-year-old Eddie Lynch Jr. who are mining crypto.
“I got into mining, figuring out what it is, how I can benefit from it,” said Lynch, who lives in Palm Beach County.
In their crypto mining business, fans run for hours a day to refresh specialized computers called “Money Maker 1” and “Money Maker 2”.
“It was about $ 10,000 for these two configurations, and we got the money back in six to seven months,” Lynch said of computer systems known as “mining platforms.”
It is hardware connected to a motherboard and graphics cards, 24 of them in total that run programs to find certain types of cryptocurrencies on the Internet.
“We’re undermining Ethereum just because it’s the most profitable,” Lynch said.
Ethereum is just one type of cryptocurrency. A coin is worth more than $ 3,000.
Bitcoin is another type of cryptocurrency, the most valuable now costing more than $ 40,000 per coin.
“These coins are essentially, they are algorithms, which are being mined around the world by different individuals, different companies,” said Eric Cornell, a private equity advisor and branch owner at Helius Wealth Management.
There are no banks involved in cryptocurrency, but it works like the stock market. There are several global exchanges of different digital currencies.
People can invest in cryptocurrencies as they do in stocks. Take money from your bank account and transfer it to a virtual wallet to invest in that exchange.
Another form of investment is the purchase of infrastructure, as Lynch did, to undermine cryptography and generate profits every day.
“We’re earning between $ 50 and $ 60 a day right now, which we were making between $ 100 and $ 150 a day when rates were okay,” Lynch said.
What these supercomputers do is find cryptographic pieces in databases called blockchains.
“These are algorithms. People are using these gigantic servers and a lot of power to be able to go out and try to essentially extract their algorithms from the world of virtual finance,” Cornell said.
There is the downside.
The chairman of the U.S. Energy and Trade Committee said Ethereum and Bitcoin cryptographic mining emitted 78 million tons of carbon last year, the same as 15 million cars on the road.
“We have to do it efficiently,” Lynch said.
That’s one of the reasons Lynch was at the Miami Bitcoin Conference this week, to brainstorm on ways to make cryptographic mining cleaner.
“We put this in a system we created with immersion cooling, so it’s a better way to use less electricity and keep the hardware intact,” he said.
Is cryptocurrency the future?
“Unfortunately, the balance sheets are pretty wild,” Cornell said.
Cornell admits there are high rewards in daily trading.
“And they could lose money so fast,” he said.
For Lynch, there is no work from 9 a.m. to 5 p.m., and he is not tied to work Monday through Friday. Your business runs on its own.
“The customer is ourselves and our workers are these hardware,” he added.
But cryptography has a long way to go to be widely accepted.
“It’s already down 3.4%,” Cornell said. “And that’s where we find a problem with cryptography, that there’s no value reserve at the moment.”
Cornell points out that companies cannot make profits using it at such a volatile pace.
Only a few US stores accept cryptocurrencies.
He expects more will in the future, but with miners like Lynch finding more coins every day, there is more skepticism among some in the world of finance.
“[Some have] he called it the biggest Ponzi scheme of all time, you know, it couldn’t be worth anything tomorrow, “Cornell said of what he heard from some financial partners about cryptography.
Others wonder how secure cryptocurrency is.
There is a risk that your digital wallet will be hacked, but Cornell said that, in general, cryptographic transactions are secure.
The reason is that every currency has a record that records every transaction, and there are millions of these books that match, making it difficult to counterfeit a cryptocurrency or duplicate transactions.