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Crypto mining is one of the most lucrative and preferred ways to own cryptocurrencies. It is not only cheaper but also more future-proof of any fluctuations in the market. However, it wasn’t always this productive, as earlier crypto mining was done on GPUs and CPUs. But due to technological advancement and development, it is no longer viable to mine cryptocurrencies on computers.

Today, highly advanced ASIC miners are used to mine cryptocurrency as they are super-fast and can handle complicated computations easily. While these ASIC miners are robust and capable, there are still few things that affect their profitability.

Problems faced by ASIC miners and how to solve them?
ASIC miners are the most advanced tool available in the market for crypto mining. However, there are still a few wrinkles that need to be ironed out to make it even more rewarding.

High Energy Costs
A mining farm has hundreds of ASIC miners working together to mine cryptocurrencies. These machines require a significant amount of power to work efficiently and generate yields. This high power consumption results in higher electricity bills that cut down the profits. Also, most of the mining farms rely on traditional sources of energy that harm the environment.

This problem can be solved in two ways. The first is to use less-power-intensive protocols that tokens such as Ethereum and Cardano are using. These protocols cut down the power consumption but are costly and centralized. The second solution is to rely on renewable sources of energy such as solar energy and hydroelectric energy. The latter solution is more effective and environmentally friendly.

CryptoJacking
No matter how secure blockchain technology is, crypto mining is still susceptible to hacks. Hackers have several advanced tools at their disposal that can hack through protocols and affect the price of cryptocurrencies.

To tackle this problem, blockchain networks use the Proof of Stake protocol combined with other protocols to add additional protective layers. If one of the protocols is affected, the other remains unaffected and gives the network a fighting chance.

Centralization
ASIC miners are usually specifically designed to mine a particular cryptocurrency. These ASIC miners are so effective that any other machines cannot produce the same results. This feature gives ASIC miner manufacturers a monopoly over the market as they can control the price and supply of these machines, which results in centralization.

There are potentially two solutions to this problem. Firstly, the ASIC miner manufacturing process can be decentralized so that no single manufacturer controls the flow. Secondly, specific protocols can be used that eliminate the need for specifically designed ASIC miners.

Hefty Costs
ASIC miners can cost from $20 to $5000. However, to generate profits and compete in the market, miners have to rely on advanced ASIC miners that can cost a fortune. Also, the electricity and maintenance costs can cut down the yields making it harder to recover the initial investment, let alone make a profit.

The only reliable solution to this problem is to use marketplaces that offer smart contracts at affordable rates. Interested buyers can get ASIC miners at affordable prices that include maintenance and electricity costs.

Maintenance
ASIC miners require constant maintenance due to high power consumption and heat generation. Maintaining these machines individually is a costly and lengthy process. Instead, using a marketplace such as Zionodes that takes care of everything will make your life easier.

We always hear people saying to young couples “Plan a baby”. This bundle of joy, what we call, definitely needs a lot of planning, not just emotionally, mentally or physically but most importantly financially. As this bundle of joy comes with a sense of responsibility, where one needs to plan a better future for their kid. Financial Planning is the most basic requirement yet not prioritized on top by many parents.

We as financial planners understand the importance, as every parent would want to give the best lives to their children. So this time we would want to simplify how financial planning can make you a better parent!

Pre Plan before planning for a kid:
Many of us already know what our goals and milestones are that needs to be achieved. Many of us might have already even planned for it. However, there are many initial expenses that need to be taken into consideration before the journey begins from being a bachelor to getting married and finally having a kid. As and when we grow in our lives, every stage we live through requires different levels of responsibilities and planning, we all know it by now. So as you and your partner decide you want to plan a baby, you must start an expense kitty at the earliest that will be used for your baby’s expenses. The best option is to invest, now whether it should be in debt funds, liquid funds, or equity funds that depend on the time horizon of your goal. One thing that is sure is consistently saving each month. A financial planner would also take into consideration many other factors like inflation, risk tolerance, market conditions, etc

Protect the known factors:
With financial planning, you will realize the known factors of life. Up until now, as a parent, you might have known it is important to have health insurance if you are planning a family. But the right amount requiredas per your contingency planeven though your current organization is offering insurance will be explored when you sit for financial planning. It is always better to have personal insurance customized as per our needs and not standard policies. If you have health insurance before pregnancy, you need not worry about hospitalization expenses as it is taken care of. The premium you would pay would also be less along with stress levels for you to enjoy the journey of a newborn.

Education needs:
This is a factor that any parent can’t skip through i.e Education. Every parent wants their kids to have the best education from the best institutes. These emotions of saving your kid from every struggle are evident in most of the parents and the reason most always think is, “My kid should not go through what I had gone through”, isn’t it?

So planning for their career will be the second most important aspect I hope, post your retirement planning. Because it’s not said enough that for kids’ education loan can be taken but for retirement, there is no loan. So depending on the time horizon one must plan their kid’s educational expenses keeping inflation in mind or know about the factors of options available in the market. We usually take 10% to 12% as inflation costs rise. A financial planner will always guide you practically keeping the emotions of being a parent aside and sometimes that’s what is needed to be a better parent.

Educating needs:
Our educational system has limited or no knowledge of finance from an early age. There is no such subject that inculcates the habit of financial planning in kids. Financial planners whilst planningaim to educate you to be a good teacher to them about financial planning and ensure financial literacy is given to them from their right age. Hence you cultivate the habit of saving and investing in your kid.

Some financial plans can go further with marriage, their homes, etc but the best parenting would be to teach them, let them grow, and someday let the kid leave the nest and do his financial planning on his own, just like you did. To conclude it we would like to know some of your viewpoints on the same. As we are just a call away to help you.