Canada’s Bit Farms Buys More Than 2,000 Mining Machines

Bit Farms, a cryptocurrency mining company stationed in Canada, has bought more than 2,000 new A10 Avalon mining machines to improve its mining capabilities.
 Bit Farms Is Moving Up the Mining Ranks
Canada has proven to be very attractive to foreign crypto miners, who see the company as a prime haven thanks, in part, to its low energy costs and vast open spaces – perfect for building new mining businesses. At press time, the bitcoin hash rate is breaking all sorts of records, which means that extracting new coins is becoming increasingly difficult.
In addition, the topic of bitcoin and crypto mining appears to be setting off a firestorm across the globe. China, for example, once a prime location for bitcoin users, garnered much income in 2017 and 2018 through bitcoin mining companies like Bitmain, centered in China’s capital of Beijing.
The problem is that the country has discussed invoking a permanent ban on cryptocurrency mining in the future thanks to its hazardous environmental impact. Mining new coins, it’s said, is responsible for several carbon emissions making their way into Earth’s atmosphere.
If China were to invoke such a ban, companies like Bitmain would likely have to find new homes, and China would miss out on several funds it could potentially put towards building its digital economy. The good news, however, is that China has been discussing the ban for many years and has seemingly done little to nothing about it during that time, so the idea of such a move taking place seems a little far-fetched at this point.
The A10 machines were launched last March. Their claim to fame is that they consume lesser energy than other standard miners while offering “high computational power” to operators everywhere. With the number of machines that it’s now utilizing, Bit Farms mining power will grow to roughly 51 megawatts.
 How Competition Is Playing a Bigger Role
Wes Fulford, chief executive officer of Bit Farms, comments in a press release:
 This past week, our operations team has successfully installed 205 PH/s of new T3 mining hardware in Phase 1 at our Sherbrooke expansion. The new Avalon equipment, combined with 50 PH/s of additional T3s announced last week, will increase Bit Farm’s computation capacity to 667 peta hash, more than double the hash power reported in the second quarter of 2019. Going forward, our operations team is nearing completion of our Sherbrooke Phase 2 infrastructure in order to facilitate the installation of subsequent new generation hardware deliveries.
The bitcoin mining industry has become very competitive as of late, especially in Canada, and companies are looking for new ways to alleviate some of the pressure. Canadian blockchain firm Block Stream, for example, has partnered with Hydro Quebec to ensure that all energy remains affordable to its miners given that the electricity it provides runs on waterpower.
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Libra Still Set for a 2020 Release Despite Regulatory Hurdles

Despite all the regulatory hurdles and all that hate that has come from both domestic and international lawmakers, Libra, Facebook’s controversial new cryptocurrency, is still proceeding with a 2020 launch.
 Libra Is Still Moving Ahead
Libra was first announced in June to widespread criticism. As Facebook was just beginning to relieve itself from its previously embarrassing fiasco involving Cambridge Analytica in 2018, the company unveiled new plans for a cryptocurrency that could be used as a global payment system regardless of one’s living situation or location.
Many U.S. Senators scowled at this idea. They plowed through Facebook’s executive team with questions regarding how Libra was planning to keep people’s financial data safe and in check. Many believed that if the company couldn’t keep people’s personal data safe before, they certainly wouldn’t be able to do so this time.
David Marcus, the head of Facebook’s blockchain division, was grilled hard by members of the U.S. Congress, and vowed to put the plans on hold until they had gotten all their questions answered. Now, it appears Marcus is going back on this word, claiming in a recent interview:
 The goal is still to launch Libra next year. Until then, we’ll need to address all questions adequately and create a suitable regulatory environment.
The problem with that is Facebook has yet to go into detail regarding what regulations will be in place. Marcus and his team have discussed regulation in the past, but there aren’t any set laws or statutes that the company is planning… At least none that they’ve made public.
Naturally, legislators are nervous about this, and some countries, such as France and Germany, are vowing to do all they can to prevent Libra from entering their financial scenes altogether. In response, Marcus says that while Libra can be used for cross-border payments for “small sums,” it’s unlikely the coin will be available for spending in these countries or its neighbors. He states:
 It’s unlikely in any case that people will pay for an espresso in Switzerland, Germany or France with Libra in the future.
 What’s Backing This Cryptocurrency, Anyway?
Libra will be governed by a board of roughly 28 different companies and bodies, which raises concerns regarding its potentially centralized nature. Most cryptocurrencies, except for Ripple or those issued by banks, are intended to be decentralized or in the hands of the people that use them. The fact that it will be directed by “men and women of power” has a lot of people raising an eyebrow or two.
At press time, it has been revealed that Libra will be backed by a wide variety of stable currencies, including the U.S. dollar, the euro, the Japanese yen, the pound, and the Singapore dollar.
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Patrick Byrne Sells Overstock Shares for Crypto and Precious Metals

Patrick Byrne, the former chief executive of Overstock.com who sent shockwaves through the blockchain community not too long ago when he resigned from his post, has decided to sell all his company shares – worth roughly $90 million before taxes – and commit all his money to crypto and precious metals.
 Byrne Is Getting Ready for a Financial Breakdown
Byrne comments that he’s ready to go to war with the “deep state” and its “pet” the Securities and Exchange Commission (SEC).
In 2014, Byrne was labeled bitcoin’s “messiah” by Wired magazine. His resignation from Overstock came about in August when it was revealed he had been involved in the investigation of accused Russian spy Maria Butina.
In a recent blog post, Byrne comments about his situation and writes:
 After paying tens of millions in taxes… the rest will be in investments that are counter-cyclical to the economy: gold, silver and two flavors of crypto.
The rest of the blog is strange, to say the least, and does feel like the words of someone preparing for the battle of their lives. It’s unclear what Byrne is trying to get across and he writes:
 The gold and silver are stored outside of the United States, in Switzerland, and within two weeks, will be scattered in other locations that are even more outside of the reach of the deep state, but are places that are safe for me… The crypto is stored in the place where all crypto is stored: in mathematical mist, behind long keys held only in the memory of someone who is quite good at storing such things in memory (with paper backups in the hands of a priest I met 35 years ago who never sets foot in the west).
What is he talking about? Sure, Byrne has commented in the past that a massive global apocalypse is coming, but this all sounds a little far-fetched. Storing one’s private keys with a priest? Scattering money everywhere in areas only you can find? This sounds like something out of a modern-day Indiana Jones flick. Either that or a major scavenger hunt of some kind…
 Coming Up Short on Blockchain
At press time, it’s unclear which two “flavors” of cryptocurrency he’s talking about, though to be fair, one will likely be bitcoin. Byrne has constantly praised the asset, while Overstock.com was one of the first major retailers to accept BTC as a means of payment during a time when cryptocurrency was mostly used for speculation and growing one’s wealth.
However, Byrne’s Medici Ventures has consistently sought to place money in new blockchain ventures. The problem is that very few of these ventures have initiated returns to Byrne or his team, and the company was $60 million in the hole by the end of 2018.
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Bakkt Launches Physically Delivered BTC Futures

Coinspeaker Bakkt Launches Physically Delivered BTC FuturesLet’s investigate. To encourage the participation of institutions in Bitcoin, in 2018, Bakkt announced their plans to address such well-known issues as AML/KYC, security breaches, lack of regulation, a volatile asset price, etc.Now, with fraudulent trading gapped and collateral in place, Bakkt is ready to launch since they have received all the regulatory approvals needed.Time will tell if Bakkt will be able to tackle all the challenges that arise when working with a new digital asset class, such as a physically delivered Bitcoin futures contract.The value of this offer might be compared with that of gold. When Bakkt’s Bitcoin Futures expires, the customers will receive the actual king coin instead of a cash payment. That being said, it’s an ultimate breakthrough in the niche.There will be two types of futures in place. Namely, a daily futures and a monthly futures. This concept, though, begs the following question, if the futures is physically delivered, where are they going to store Bitcoin? Now, the place called the Bakkt Warehouse was already discussed in media many times, but here are just a few key takeaways.It will be both, an online and air-gapped digital storage distributed across the globe. Plus, the Bakkt systems algorithmically balance between both warm and cold storage tiers to minimize risks associated with warm storage.Bakkt has raised $182.5 million from backers, including Microsoft, and also received support from regulators, which has pushed the main competitors into the shadow.However, such top dogs as LedgerX and TD Ameritrade-backed ErisX compete for the niche, too. They just haven’t finalized their processes yet.Bakkt Launches Physically Delivered BTC Futures

Bitcoin Futures Contracts Headed Our Way in Early 2020

Futures exchange operator CME group has announced that it plans to begin offering bitcoin futures contracts starting in early 2020. Futures were originally launched at the end of 2017. At press time, more than 3,000 people are trading futures and approximately 20 successful expiration dates have occurred since their integration.
 Bitcoin Futures Are All the Rage… Right?
Tim McCourt, global head of equity index and alternative investment products at CME says:
 These new products are designed to help institutions and professional traders manage spot market bitcoin exposure, as well as hedge bitcoin futures positions in a regulated exchange environment.
In addition, roughly 7,000 bitcoin futures contracts (equal to about 35,000 bitcoin units at the time of writing) have traded each day on CME beginning in 2019.
It’s easy to get caught up in the hype and hoopla surrounding new products like futures contracts, but two big questions come to mind: how much can they really do for bitcoin and cryptocurrencies, and how much will people really get into them?
At first, one’s automatic answer might be “a lot,” but if one were to look at the facts as of late, there’s a lot to consider. Take the notion of a bitcoin exchange-traded fund (ETF), for example. This product has been in the works for years, but it hasn’t gotten very far. In fact, recently VanEck Solid X, a joint venture that first issued their application for a bitcoin ETF in March of 2017, withdrew their latest proposal for one such product despite a quick and upcoming decision date in mid-October.
The Securities and Exchange Commission (SEC) was set to say “yes” or “no” regarding the application in about one month, which means the company was on the verge of getting its decision after 2.5 years of waiting, so to suddenly withdraw the proposal like that is strange and raises a lot of questions, such as, “Did VanEck Solid X think nobody would be interested all of a sudden?”
Who knows, but this is giving other companies, such as Bitwise, a chance to steal the spotlight with their bitcoin ETF applications. Despite the upcoming October decision dates for these companies, SEC chairman Jay Clayton believes it will be a long time before a bitcoin ETF is approved.
 What Can All These New Products Do for the Crypto Industry?
In addition, VanEck recently released a new bitcoin trust product that would have allowed users to trade “baskets” of BTC. Despite the gravity of the product, it made very little headway, attracting only $40,000 (roughly four bitcoin units at the time) in trades during its initial weekend launch.
And, of course, there’s Bakkt, which has encountered delay after delay. Reports have emerged recently discussing what Bakkt, at this stage, could really do for bitcoin should it suddenly move forward.
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Colombia Seeks to Up the Ante on Crypto Legislation

Latin American countries such as Colombia are top havens for bitcoin and cryptocurrencies. Unfortunately, what these countries don’t always have are the right regulatory tactics, but some are looking to change that.
 Is Colombia Looking to Change Itself?
In the past, companies like Paxful have done their best to increase the number of bitcoin ATMs present in the country, and for the most part, they’ve been successful. In addition, Colombia has increased its use of altcoins like Ethereum and Dash, two primary competitors to bitcoin, so to say that Colombia has a healthy crypto atmosphere would be correct.
However, what it doesn’t seem to have are the right statutes in place that would allow crypto use to continue appropriately. These statutes would be handled by the Colombian Superintendency of Financial Assets, and the organization has been rather slow to implement the right laws. At press time, the agency does not recognize crypto exchanges as legal trading platforms, which means that any customer that loses their funds through an exchange hack has no one to turn to, and their money is likely gone for good.
The organization recently issued a statement regarding cryptocurrency-related laws in Colombia. It says:
 None of the transactional platforms or marketers of ‘virtual currencies’ such as bitcoin are regulated by Colombian law, nor are they subject to the control, surveillance or inspection of this Superintendency. There are no mechanisms to enforce compliance with transactions with ‘virtual currencies,’ which significantly increases the possibility of noncompliance… [Cryptocurrencies] do not constitute a value in terms of Law 964 of 2005. Therefore, they are not part of the infrastructure of the Colombian stock market. They do not constitute a valid investment for the supervised entities, nor are there operators authorized to advise and/or manage operations on them.
Clearly, anyone who uses or stores cryptocurrency in Colombia is taking a big chance. With no governing body regulating crypto activity, the digital asset industry in Colombia is still very much locked within the “wild west” mantra that was once so present four or five years ago.
For the most part, however, this doesn’t seem to be getting in the way. Many acknowledge this and are trying to make a difference to make Colombia’s crypto future a little easier. One such figure is Congressman Mauricio Toro of the Green Alliance Party, which recently introduced a new bill that would clarify present crypto laws and legalize crypto exchanges throughout the nation.
 More Regulation Is Needed
He comments:
 In Colombia, the financial apparatus has been overprotected due to [perceived] risks associated with financing terrorism and money laundering; financing illegal groups and drug trafficking. The only way to calm and modernize [this system] and update it according to the challenges of the modern economy is to understand the [Colombian] state and its concerns.
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Is North Korea Building a National Digital Coin?

North Korea is developing its own national digital currency. The trend follows a long list of other countries, predominantly in Asia and the Middle East such as Iran and China and is likely an attempt to thwart present U.S. sanctions.
 North Korea and Crypto: A Scary Mix?
It’s hard to know how to feel about news like this. On the one hand, any national venture involving digital assets is likely to propel the industry forward, but at the same time, what does North Korea plan to do with this cryptocurrency? The country has had a very “interesting” relationship with digital assets in the past, typically robbing other nations of whatever stashes they might have.
North Korea has allegedly been at the center of several hacks and crypto jacking attempts to gain funds that don’t belong to it. Now, news is emerging that suggests the country is using stolen crypto to fund its nuclear program.
At least the other countries, i.e. Iran and China, are developing their own currencies after having a relatively mixed relationship with crypto, but North Korea has always been clear on its stance. Crypto is a great tool for hiding one’s money, and why mine it if we can steal it?
China, which at one time was arguably the bitcoin capital of the world, has since banned all foreign exchanges and initial coin offerings (ICOs). It has also stated plans to potentially ban crypto mining but has yet to take any action in this department. It’s now looking at creating a new national cryptocurrency as a means of competing with Libra, Facebook’s highly controversial new coin.
Iran, on the other hand, has always been against bitcoin due, in part, to present sharia law, but it has seemingly “come around” here and there on a few different aspects. Crypto mining, for example, has since become legal in Iran. The country is likely looking to use its new digital currency as a means of offsetting U.S. sanctions after America imposed several new ones late last year and exited the U.S.-Iran nuclear deal in 2018.
 Just Getting Started
Alejandro Cao de Benos, an official that’s in charge or organizing North Korea’s crypto conferences, said in a statement that the currency is not yet named and will be more like bitcoin. He also states:
 We are still in the very early stages in the creation of the token. Now, we are in the phase of studying the goods that will give value to it […] No plans to digitize the [North Korean] won for now.
North Korea is a country that’s got the whole world on edge. In most cases, an addition to the crypto industry would be celebrated. Here, we must take everything with a grain of salt and greatly consider the next steps.
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Stripe’s Valuation Rises to $35B with New $250M Investment

Coinspeaker Stripe’s Valuation Rises to $35B with New $250M InvestmentPayments giant Stripe announced they will be raising $250 million in funding at a pre-money valuation of $35 billion. This happened only a week after they launched some new services and now, the money they want to raise, they want to use for growing on the international level (that includes adding more new payment products and even start working with larger companies).More importantly, proud to now be working with Airbnb, Wayfair, GitHub, Twilio and The Real Real!Lots more in the works. The internet economy is still in its early innings.https://t.co/KncHRu9yK1— Patrick Collison (@patrickc) September 19, 2019When Stripe was firstly valued at $22.5 billion, they’ve raised (only) $100 million so this step represents a huge rise. Allegedly, in the round of funding are General Catalyst, Andreessen Horowitz and Sequoia but it seems that SoftBank is also one of the possible players. However, it might be not in this round, but president and co-founder of Stripe, John Collison, mentioned it might be considering second round of funding.Also, as he said, there will no be any “corporate strategics and the bank that is giving its support is Celtic Bank. However, Collison said that neither Celtic bank will be involved strategically in the whole deal. He added the $250 million will probably stay as is and everything should be finished in the next few weeks.Stripe was always pretty cautious when there were even talks about going public saying that they were pretty happy to exist as a private company and they are focused on the long term opportunities. They spent first few years of their existence to gradually build their payments business meaning the integration of payments options in their apps (they did that by providing an API to e-commerce businesses).However, it seems that that wasn’t enough for their appetites so now they are describing their word as a “Global Payments and Treasury Network.” Their latest product is cash advance and credit cards and they are meaning serious business by dealing with fraud protection as well.It’s obvious that the company wants to make a difference by adding new services so it cannot be compared with its competitors as are e.g. PayPal and Adeyn, but also Square, Brex and Clearbanc.As above mentioned, U.S. is obviously not enough so Stripe decided to go globally by expanding its payments to eight more countries (for now) that leads them to 40 in global now.The company said it processes “hundreds of billions of dollars a year for millions of businesses worldwide,” but they didn’t want to speak of any additional numbers.Companies as Wayfair, Airbnb, Twilio, GitHub and The RealReal are also among the customers that Stripe wants to target more. The truth is that startups in this sector are becoming pretty big so, all the small companies Stripe once targeted are now not that small anymore.Collison said that this from the fact that they feel strongly about Stripe’s role in the growing internet economy. The internet economy is actually still a small part of all commerce so there is a reason why so-called brick and mortar companies are the next one that Stripe wants to add in its portfolio. It’s logical that in long term Stripe plans to build on the point-of-sale services that it already has.Collison said:“Even now, in 2019, less than eight percent of commerce happens online. We’re investing now to build the infrastructure that’ll power internet commerce in 2030 and beyond. If we get it right, we can help the internet fulfill its potential as an engine for global economic progress.”Stripe’s Valuation Rises to $35B with New $250M Investment

Will Bakkt Cause Cryptocurrency Markets to Explode? PrimeXBT Research

Coinspeaker Will Bakkt Cause Cryptocurrency Markets to Explode? PrimeXBT ResearchOnly a few days remain before the launch of the long-awaited and much anticipated Bakkt trading platform, which will bring large institutional investors to the Bitcoin market. It may sound unfeasible, but Bitcoin price is expected to reach $100,000 in the coming years, and much of the next bull run will be driven by Bakkt.What is Bakkt?The Bakkt cryptocurrency platform was created by ICE, a transcontinental operator of the largest futures exchanges and clearing houses for financial and commodity markets in the USA, Canada, and Europe. The company is considered the world’s largest operator of the derivatives market, where futures contracts for energy, currencies, precious metals and other goods are traded.About 50% of the global trading volume of futures contracts for oil and oil products is concentrated on ICE trading floors. The most famous platform led by ICE is the New York Stock Exchange (NYSE).ICE is a giant in the exchange industry, with a long history and impeccable reputation, trusted by the largest and most famous investors and companies in the world with the trillions of dollars they invest with. The launch of a cryptocurrency platform from such a company will potentially attract enormous capital to the cryptocurrency market.Bakkt is a cryptocurrency trading platform for supplying Bitcoin futures. Futures delivery time is daily and monthly. In addition to trading futures, custodial storage of cryptocurrencies is available to its customers. Bakkt differs from other trading platforms like CME (Chicago Mercantile Exchange), which is trading in delivery contracts, and not derivatives. Bakkt futures are physically settled with bitcoins, which many believe will have a positive impact on the demand for Bitcoin, driving up its value.Among the first partners and investors of the platform are the world’s largest technology, consulting, and retail giants such as Microsoft, Boston Consulting Group and Starbucks, as well as a number of large investment firms and venture capital companies like Pantera Capital, Fortress Investment Group, Eagle Seven, Galaxy Digital, Protocol Ventures, Susquehanna International Group and Horizons Ventures.There was talk about the launch of Bakkt back in 2018, but the official launch was constantly delayed due to lack of permission from regulators and only in August 2019, the CFTC finally issued permission to the platform, which marked a new era in the history of cryptocurrencies – the arrival of institutional investors. Later, on September 6, Bakkt announced the start of acceptance of bitcoins for storage before the start of trading, and even earlier, the platform began to accept deposits from customers.Kelly Loeffler, Bakkt CEO explained what the platform is and what its goals are, saying that, “Bakkt is a scalable platform designed for institutional investors and trading companies that are interested in digital assets. We plan to build an open and transparent platform that will help unlock and transform the potential of digital assets in global markets and in trade. It is designed to make cryptocurrency investments safe and secure.”Why is the Crypto Community Anticipating Bakkt?The crypto community is awaiting the launch of Bakkt, as it is counting on an influx of capital being injected into the market, which contributes to the growth in the value of Bitcoin. The cryptocurrency industry during its existence has generated many successful and useful projects and initiatives that can change people’s lives for the better, and Bakkt is expected to do the same, and also fully ignite the next crypto bull run.Since it was debuted, Bakkt hasn’t been without problems, but nevertheless, the industry and related projects will benefit from Bakkt joining the global financial system. The arrival of institutional investors and the launch of a regulated platform from such a giant as ICE suggests that the industry is finally earning the respect of traditional finance and regulators.The increase in the value of Bitcoin will unfreeze many other projects that have not yet thawed after the “crypto winter”, will lay the foundation for new projects and, of course, will make money for investors and traders of Bitcoin.The community is gradually preparing for the launch of the platform, updating mining equipment in order to get as much Bitcoin as possible, while the rate is still quite low. According to the CEO of the deVere Group consulting company, Nigel Green, support at $10,000 should now be considered the official bottom for the current Bitcoin trend.Bitcoin has been consolidating between $11,000 and $9,000, forming a symmetrical triangle that suggests bullish continuation is ahead. And with the support line at $9,500 already tested 4 times, Bitcoin’s value is bound to skyrocket after the Bakkt launch.Will Bakkt Cause Cryptocurrency Markets to Explode? PrimeXBT Research

Decentralized Web Hosting: Can You Really Earn Money Renting Your Disk Space?

Coinspeaker Decentralized Web Hosting: Can You Really Earn Money Renting Your Disk Space?Decentralized hosting seems like a logical idea on the surface. It would allow simple users like you and me host sites and apps and earn money. It would end the domination of Amazon Web Services – which now controls 40% of the cloud market. It corresponds with the Web 3.0 principles – and we all want Web 3.0 to come sooner, right?But just because an idea seems great doesn’t mean that it is.How It’s Supposed to WorkThe main idea behind distributed web hosting is that people have lots of excess disk space. You’ve paid for it when you bought the drive, but it yields nothing – like an empty spare room. And just like you rent your spare room on AirBnB, you could rent your disk space to someone who needs to host a site or an app.Obviously, there’s no guarantee that you will always be online. So each site would have to be stored in many copies across the network to ensure that it’s always up. (It’s called multiple redundancy.) Hosts receive payment in crypto – either monthly or whenever they serve content.Some claim that decentralized hosting will be “light years ahead” of traditional hosting companies. It will be cheaper, faster, and more secure. And in any case, it will allow websites to shake off the yoke of evil hosting corporations, so how can it not be good?Here’s where things get complicated.Disclaimer: everything I say applies to startups that offer average users to earn money by renting drive space. Of course, there are also Filecoin and IPFS, which use different models. I’ll get to them, too. But for now, let’s do a reality check on the lofty claims of some startup founders.Myth #1: Excess SpaceIt’s curious how startup founders tend to base their ideas on one assumption – but never bother to verify it. I googled “what can I do with excess space on my computer” – and here’s what I got:I tried all sorts of search queries to find any advice on how one can profit from their excess drive space. I found none. Because people generally don’t have any extra space – that’s why we all store our stuff in the cloud.Data centers have excess space, sure. But the projects we are talking about promise something different: that you, a PC user, can earn money renting your excess space.Myth #2: It’s More ReliableA look at any hosting provider ranking website will tell you uptime is what really matters. All top-20 hosting companies offer uptime between 99.5% and 99.99%. That is, your website will be down for no more than 7 minutes in every 24 hours.If decentralized hosting is to replace traditional providers, it has to offer good uptime. Now think about it: how many copies of a site do you need to make sure that at least one is online 99.5% of the time? Five? Ten? And how can you encourage hosts to stay online? Should they pay a fine in tokens when they go offline? So many questions!Myth #3: It’s Economically EffectiveA common selling point is that since distributed hosting uses less hardware, it costs less. Apparently economies of scale don’t exist in the brave new world of Web 3.0.Hosting providers run large data centers where the marginal electricity cost for each new site is almost zero. But with private distributed hosting, energy cost is an issue.Here’s a back-of-an-envelope calculation. Let’s say you host sites on a laptop, which consumes 60 watts or 43 kilowatt-hours a month. If you live in the US ($0.125 per kilowatt-hour), you’ll pay $5.4 to keep your laptop on. It’s $10+ if you have a desktop PC. Let’s say that half of this time you’d keep it on anyway. So you have to earn at least $3 a month just to cover your cost of hosting – plus a margin.Would you host sites for a grand profit of $1 a month? What about $2? Let’s assume that you are ready to do it for $2, so the cost and profit make $5 in total.Top hosting providers offer plans for as little as $4 a month. Plans usually include at least 5 GB of space, a free domain, and lots of other perks. If you want people to choose your decentralized system over traditional hosts, you’ll have to beat that price. And – don’t forget – offer multiple redundancies.Can You Pull It Off?Let’s say you charge a site $4 a month for hosting and promise to keep at least 5 copies of it on the network. Each of the hosts will get $4/5=$0.8 per website. We’ve already calculated that you need to earn at least $5 to make it worth your while. So if you get $0.8 from each host, you need a total of 5/0.8=6.25 sites to earn $5. Even if you don’t offer 5GB of space per site but only 2 GB, it makes 6.25*2GB=12.5 GB.An average WordPress site actually takes up about 1 GB. But who will pay $3 for 1 GB when they can get unlimited bandwidth for $4? Here’s the less than encouraging result. You need to leave your laptop running 24/7 and allocate at least 12.5 GB of free disk space – to earn $2 a month. Not in hard cash, mind you – in tokens.So here’s the question: would you do it?Of course, things are a bit different if you live in a country where electricity is cheap, like China or Ukraine. But even with at the cost of $0.04 per kilowatt-hour, you’ll need to host 3.75 websites (7.5 GB of space!) to earn your $2 a month.The only way to make distributed hosting economically viable is to involve large servers. Not your average PCs but enterprise-grade hardware that can offer some economy of scale. But then it’s not quite “rent your disk space and earn money”, is it?What about Filecoin and IPFS?You might have heard of Filecoin – a decentralized network that had a massive $257 million ICO. The idea is the same: renting free storage space in an open market. However, the solution is geared towards owners of large servers. The website says, “Rent your hard drives, single disks, racks, whole data centers, every Terabyte you are not using”. Now, how many free terabytes do you have left on your PC?IPFS, or Interplanetary File System, is another ambitious project. It really works, and you can host sites on it – for free. Unfortunately, IPFS will only fit enthusiasts for now. For one thing, whenever you make a change to your website, you have to upload it all again. Moreover, URL addresses are ugly. You can host a very simple static page on IPFS, but not a WordPress blog or a WooCommerce store.The main problem with hosting a site IPFS is frequent downtime. You’ll never get 99.5% uptime – you might not even get 90%. And since it’s decentralized, you have nobody you could complain to.Look On the Bright SideDistributed hosting does have its potential advantages:Resistance to censorship. No government authority will be able to take your site down;Protection against DDoS and other attacks. The hackers would have to disable every single copy of the site;No single point of failure. There’s no risk that a massive outage will take thousands of sites down or cause a commotion on crypto exchanges, as it recently happened with AWS, for instance.True, the economics doesn’t quite work out for average PC owners – yet. But remember what cell phones were like in 2000 – and look at the smartphone in your hand right now. It’s amazing how fast technology changes. Who knows – perhaps in 2030 we’ll look back and wonder how people even lived without decentralized hosting?Decentralized Web Hosting: Can You Really Earn Money Renting Your Disk Space?