Вear market is a period when asset prices fall for a long time. There is no clear understa of how much assets should decline in value but people speak about bear market when prices fall by at least 20% in comparison with the nearest peaks, and the process lasts longer than two months.

What should a smart investor do in this case?

✅ Do not panic or sell assets.

The "bear market" does not last forever, one day the economy will start to grow again and assets will regain their value. Therefore, there is no sense to sell your coins for nothing.

✅ Diversify your portfolio.

If capital is split into different assets, then the price decline will be less painful.

✅ Imagine there is a discount for all asserts.

If the investor knows and sees promising projects, then he can earn money on the downturn. Smart investors do not sell, but rather buy assets while their value is low.

In any case, do not be afraid of a sharp decline in prices, as a bear market is a natural part of the economic cycle. It is better to look for opportunities for growth and additional profits in it 💰

On November 9-10 in Dubai, the BitCluster team participated in the World Digital Mining Summit 🌃

The main purpose of going there was the exchange of industry information and negotiation on new strategies for the global mining market development.

Together with the other event partners, we shared professional experience and discussed the latest trends in the cryptoindustry: moving mining devices from China to other countries, among which Russia is one of the main potential directions.

BitCluster representatives made proposals for the development of green mining using renewable energy sources, market globalization, building of new data centers and improvement of the current regulatory framework in relation to the cryptocurrency mining industry in the world.

In the process of fruitful discussion, we outlined important steps to achieve these goals and developed a plan for their implementation 🎯

Co-founder of BitCluster Vitaly Borshchenko also shared the company's results over the past 6 months after the restrictions in the PRC:

“Since the mining ban in China till the present, we have seen a dramatic increase in demand for our services from the largest Chinese mining companies.

Over the past 2 months, we have posted over 5000 devices. The total volume of signed contracts for 2022  exceeds 200 MW. The total capacity of clients in the negotiation cycle exceeds 1 gigawatt.

The chain is currently being expanded to accommodate these clients."

— Vitaly Borshchenko, co-founder of the chain of mining hotels BitCluster.

Before becoming one of the leaders of the mining market in Russia and the CIS, we have come a long way, accompanied by ups and downs. We decided to remember this story and share it with you.

1️⃣ It started in 2017, when interest to the crypto market began to grow actively.  Realizing the potential of the mining industry development, we have immediately set a global goal — to take a market share.

2️⃣ Therefore, the next step was a trip to China — the center of the mining equipment production. There we bought 1,500 video cards for a total cost of more than $1,000,000

3️⃣ We placed the first mining hotel in the town named Slantsy, in Leningrad Region, but for a number of reasons, we moved all the equipment to the Ivanovo Region, where the cost of electricity was about 3.5 rubles per kWh.

4️⃣ Having a great demand for the equipment and hosting, in 2018 we opened another mining hotel in Saransk, but soon the unexpected happened.

5️⃣ In February 2018, the cost of Bitcoin dropped from $ 11,800 to $ 3,676. Cryptocurrency mining became unprofitable, and many customers were forced to turn off their devices — the company was on the verge of bankruptcy.

6️⃣ In order to stay afloat, at the end of 2018, all the equipment was placed in the areas of Irkutsk data centers. And this maneuver saved the business.

7️⃣ When in 2019 the cost of BTC and the company's profit began to increase, the founders of BitCluster thought about creating their own full-fledged data center in Norilsk, and by October 2020 they brought the idea to life but, of course, with an incredible amount of effort.

Today the company has a chain of data-centers located in the Ivanovo region, Angarsk and Norilsk — and there are all opportunities for development and further growth.

Vitalik Buterin is one of the founders of the largest blockchain platform and altcoin Ethereum, as well as the youngest crypto billionaire 💰

Vitalik has been interested in the cryptocurrency market since childhood and at the age of 17 he became a co-founder and editor of Bitcoin Magazine.

Further, in 2013, when he was 19 years old, he launched the first version of Ethereum, a payment system and а platform for developing applications based on the blockchain. And by May 2021, his fortune exceeded $1 billion.

However, Vitalik did not stay in the status of a cryptocurrency billionaire for long: on May 19, Ethereum fell sharply, and the fortune of the young genius declined by almost 40%.

What about now, it is impossible to say for sure how much money he possesses. However, it can be assumed that taking into account the current Ethereum rate, he managed to regain his former status.

With the development of cryptocurrencies, there appear a lot of new terms, the meaning of which is not always obvious.

For example, the terms "hamster", "whale", "bull", "bear", "degen" and "hodler" describe certain strategies for making money in the cryptocurrency industry. Today we will clarify them and help you understand what type you are.

🐹 Hamsters are usually called inexperienced players who buy into psychological manipulation, tend to believe in rumors or trust to handle their assets to precarious organizations in the hope of making a good profit.

🐋 Whale is a major player in the market with a large capital who is able to radically change the situation with price movements.

🐂 Bull is the name given to the securities and digital assets traders who earn on the growth of the asserts value.

🐻 Bear is an alternative to bull. In contrast, the bear always bets on the fall in the market and therefore sells assets in short terms.

♾ Hodler is an investor who hold his assets in any situation on the crypto market.

🤡 Degen is a term used to describe traders who switch from one DeFi token to another based solely on hype, FOMO and narratives.

We continue to acquaint you with the most popular consensus mechanisms — ways of agreement regarding the validation of transactions in the blockchain system.

Earlier we have already talked about the Proof of Work (PoW), Proof of Stake (PoS) and Delegated Proof of Stake (DPoS) algorithms and today we will try to clarify others.

👉🏻 So, Proof of Capacity (PoC) is a consensus mechanism that requires users to share free capacity on the HDD to generate new tokens.

👉🏻 Proof of Importance (PoI) is a modified Proof of Stake that estimates not only the number of tokens, but also account activity and continuous online presence.

👉🏻 Proof of Authority (PoA) is a consensual mechanism that is used on networks that require user authentication. For the network, this means that only trusted nodes can participate in mining.

To reduce the likelihood of an attack and be confident in all agreements, it is important to distinguish all the consensus algorithms and understand which one will be the most reliable for you.

6 months ago, about 70% of miners around the world lived and worked in China. However, due to pressure from the Chinese government, the geography of cryptocurrency mining has changed significantly, which entailed serious consequences.

Many Chinese miners have migrated to other countries to continue mining cryptocurrencies.  The most attractive countries for them became the United States and Kazakhstan, where 16.8% and 8.6% of world mining are concentrated now.

The other change is the use of renewable energy, since the main reason for the mining prohibition in the PRC was the excessive electricity consumption by miners.

Now mining companies around the world are looking for renewable energy sources. This type of energy is not only cheaper, but also environmentally friendly — everyone is in advantageous conditions.

The ban on the cryptocurrency mining in China has also become one of the reasons for the market decline and, as a result, the complexity of the blocks. The price of bitcoin has almost halved compared to the all-time high in $65,000. It has become more profitable to mine cryptocurrencies.

And although the market is gradually recovering from the fall in May, it has not been possible to return to its former indicators yet.

Nowadays, the interest in blockchain technology is growing exponentially, but still for many people the industry remains a mystery.

We have prepared some interesting facts that will help dispel the fog and understand the concept.

1️⃣ Blockchain is a technology that allows people who do not know each other to trust and share event recording;

2️⃣ Bitcoin is the first and most famous application of blockchain technology;

3️⃣ The first block was generated in 2009, and today there are more than 2 thousand types of crypto-tools based on different blockchain modifications;

4️⃣ Technology increases the speed of transactions, the reliability and availability of services;

5️⃣ The fields of use: cryptocurrencies, financial services, public sector (state registries, notaries, electronic voting, etc.), transport and logistics, healthcare, intellectual property management, etc.

Hope we managed to open the curtain and tell about the complex phenomenon in an accessible and understandable way 👀

The consensus mechanisms are the rules according to which blocks are generated in the blockchain. There are many types of them: some mechanisms allow you to build reliable decentralized system, others — blockchains with high bandwidth and scalability.

In order to assess the prospects of a particular blockchain project, it is important to understand their differences.

Today we will talk about the main three consensus mechanisms:

👉🏻 Proof of Work (PoW) is the first consensus mechanism that determines which blocks will be added to the chain after mining. Its main goal is to prevent coin reuse.

👉🏻 Proof of Stake (PoS) is an alternative to PoW created to address its main shortcomings: low speed of work and poor network scalability. The transaction is verified by the validators with the largest number of coins and the age of the stake.

👉🏻 Delegated proof of stake (DPoS) is a type of PoS, similar to the representative democracy of modern countries. In DPoS systems, participants use their tokens to select validators who validate and add blocks for reward.

In short, the main difference between PoS, DPoS and PoW mechanisms is the principle of choosing a participant who will get the right to add a new block to the chain.

Of course, these mechanisms are basis and most popular but far not the only ones. We will talk about the rest soon.