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Business

How Cryptocurrencies Are Affecting Resource Costs

Cryptocurrencies have been around for a while now, and the effect they’re having on global resource costs and availability is now very clear. The currencies in themselves do not affect resource cost much, they only have value relative to their availability and what people are willing to pay for them. The main resource cost with CCs is the process of adding more coins to the global ‘pool’; mining.

Though all cryptocurrencies are extremely complex in how they work, they do follow the same rules as any other limited-availability commodity. If you think of CCs like beanie-babies, it’s easy to see how they work. There is a very limited supply, and the value is only given when people want to collect them. As the supply diminishes, the value of each one increases, leading to a cycle of increasing value over time. Of course, this trend cannot last forever, and the recent crashes in value show this easily.

The difference between beanie-babies and crypto is that anyone can create more crypto, using a technique known as mining. Crypto mining is basically using the algorithm to produce your own CCs from nothing, which seems like an incredible way to earn money. Unfortunately, the set up costs and return on this investment is very, very low for the average user.

To mine any cryptocurrency, a high end graphics card (or 30) is needed to run the complex simulations. This has led to a massive hike in GPU cost worldwide, with the market now being dominated by miners instead of editors, gamers, and designers. It’s simple supply and demand; the demand has shot up, and the supply is now relatively low. Many of the more recent GPUs being released are geared towards miners, with an average cost increase of up to 30% over the last few years. Miners now dominate the GPU market, and even older, slower GPUs are being snatched up all over.

Of course, in order to power all of these home based and industrial mining operations, a massive amount of electricity is needed. It’s been estimated that the current crypto mining going on worldwide needs as much power as the average G20 country; the power usage of the UK or Australia. This is a huge amount of extra power that needs to be produced in each country, and in many places needs extra infrastructure to accommodate this. With a very simple mining rig of 1 GPU running the algorithm constantly for a year, this would use around 15,000Kwh; about as much as a small home.

Of course, most mining rigs are much more complex and expensive than this, with machines running not only 24/7, but also with up to dozens of graphics cards. For comparison, a tonne of coal produces around 2500Kwh, so a single GPU rig needs around 5 or 6 tonnes of coal per year. The ‘average’ rig of 6-8 GPUs would need around 45 tonnes of coal per year; this is a huge environmental impact even when not using coal.

As a result of this massive power requirement, many power-users are choosing to relocate their mining rigs to places with cheaper power. This is causing an influx of people to move where power is cheaper or more abundant, such as near solar generating areas.

Power cost is going up, GPU and computing costs are going up, even cold-ready storage and office space is becoming more expensive. Cryptocurrencies may be great for users in the short to medium term, but the long term ramifications are still being studied. Bitcoin, Litecoin, Etherium and virtually all other currencies are free to create, but the cost for the environment and society is huge.

Can A Piece Of Junk Be Considered A Donation?

Cultivating a sense of charity in a self-centered world is indeed an honorable cause. However, there are times when a charity needs to have the ability to say no to such donations. Unfortunately, there are instances when it would be a
good idea to really think about going to the junkyard instead of donating problems.

Trash Is Not Treasure

Although it may hold true that charities might make a bit of revenue by offering scraps, the labor included may not be equal to or even outweigh the financial fruits. Think about it, if your car or truck has a trashed engine a rusty
chassis and is literally of no usage, the charity will need to carry the cost of towing, taking the automobile apart then transferring it to the scrapheap.

An Assertion

Now you may argue that there are online companies that accept junk automobiles as offerings. Really, if you do even the slightest research study, you will find out that these businesses are not charities at all. They are organization
entities whose service is to be a middleman between individuals and charitable organizations. Let me put it in this manner: If an old rusty vehicle sells for $100 and the charity only gets $5, then what will a charity do with $5?!

Be Fair!

Be honest, if someone provided you a useless car would you like it or use it? As a matter of reality statistics will tell you that as much as 5% of all donated automobiles are a liability to the charities rather than a true asset.

On the other hand, if your car is a vintage collectible even if it’s in really awful shape you still might be able to get a charity that will be overjoyed at receiving such a contribution. A vintage car contribution is unusual because
like all antiques they really have a high resale sticker price, and some are even invaluable. Then auction it off to the greatest bidder.

If you think about it, substantial charitable organizations like the American Red Cross only accept “decent looking and operating cars.” They need to earn a profit so that they can have it work into humanitarian agendas. If your automobile
is only unsightly but still runs fine the company has subsidiaries that recondition the vehicle. Once its refurbished, they will either utilize it to perform their tasks or auction it to raise funds.

Don’t Be Crestfallen

If your nostalgic old ride can’t qualify as a worthy automobile contribution, then why not sell it to a dump heap? Set it up to be towed and then utilize the money and contribute it to the charity.

If you are truly devoted to the generosity of donating, ask the charity to bring back the automobile and then auction it off to the highest bidder. The bottom line is you are dramatically helping the charity out if you are in fact donating a
vehicle in good working order. Yes, you can have yourself a tax write off but it goes much deeper than that and warms the heart.

How to Effectively Locate Your Business

Location is one of the fundamental aspects of a business. Locating your business at an ideal place is essential in its overall success and that is why it is important considering a few issues before getting settled with your plan to go ahead. Consider your customers’ proximity to your business as well as the other underlying aspects that may affect the effectiveness of your business.

Demographics

There are two important angles to the issue of demographics. First, consider who your customers are and how important their proximity to your location is. For a retailer and some service providers, this is critical; for other types of businesses, it might not be as important. The demographic profile you have of your target market will help you make this decision.

Then take a look at the community. If your customer base is local, does a sufficient percentage of that population match your customer profile to support your business? Does the community have a stable economic base that will provide a healthy environment for your business? Be cautious when considering communities that are largely dependent on a particular industry for their economy; a downturn could be bad for business.

Now think about your work force. What skills do you need, and are people with those talents available? Does the community have the resources to serve their needs? Is there sufficient housing in the appropriate price range? Will your employees find the schools, recreational opportunities, culture, and other aspects of the community satisfactory?

Sourced from: https://www.entrepreneur.com/article/244866

A business’ success is greatly affected by its location, the better you locate your business the higher the chances of succeeding. Taking care of the three essential types of locating your business that can be charted; which are the profitable, break-even and Go-broke is inevitable. The size of your business, the budget as well as the management is also vital in locating your business strategically.

A truly profitable location will make money and the business will appreciate in value.

A break-even location will pay the owner a small salary and pay the rent but not much more.

The go-broke location demands the owner continually pour more money in to survive. The example that comes to mind lasted less than three months from opening to closing for one unfortunate tenant. Despite my warnings that this was a go-broke location, the business owners spent over $80,000 into their store setup and, by the second month of operation. couldn’t pay their rent. Usually a go-broke location will not only steal your capital but put you into personal bankruptcy, after you’ve maxxed out your credit and second-mortgaged your home.

If you thought site selection was all about Location – Location – Location you’re right … intellectually. However, when tenants are involved in the site selection process, good old common sense often goes out the window. Consider for a moment that site selection is not a science; it’s an art, part research, part luck, part timing and many other ingredients combined. For example, is the best time to do site selection is before or after you commit yourself to opening a business? If it sounds too obvious don’t be fooled; most tenants do their site selection after – not before – committing themselves to a business opportunity. One such case involved a retailer who began receiving seasonal spring inventory for a new store but he hadn’t finished picking the location for the store or negotiating the terms yet. Consequently, this entrepreneur compromised on the location and on the best deal he could have made … just to finally get open.

Sourced from: http://www.bluemaumau.org/successful_site_selection_good_business_poor_location_will_become_poor_business

It is normal sometimes that people develop the urge to move their businesses to new frontiers. This may be influenced by a number of factors. More importantly, however, what one needs to consider more is the essential factors worth considering when moving to new environments. Among these are the customer relations you will need to establish in the new market, costs and possibilities that may arise.

Ecosystem Support

“If you’re going to try to break into a new market, it helps to have support. Who from your ecosystem has connections or extensions in the new market? What intros can they make? How can you parlay existing relationships into new ones? If you see a great opportunity for your offering in a new market but don’t have the insider track on getting the word out, it will be hard to get traction. ” ~ David Ehrenberg, Early Growth Financial Services

Cost of Living

“Manhattan sounds like a great place to do business, but if you’re moving from Conway, AR, you might be in for a surprise. Don’t let this prevent you from making the switch, but make sure the potential income gains outweigh the increase in expenses you’ll face. ” ~ Nicolas Gremion, Free-eBooks.net

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Minimum Viable Move

“Expanding to a new city tends to get us dreaming about new office space, additional hires and other expensive changes to our companies. But an expansion can be as simple as driving to that city once a month and getting a day pass for a coworking space. Consider what the minimum presence you can get away with is, along with how you can test that you’re moving to the right city.” ~ Thursday Bram, Hyper Modern Consulting.

Remote Possibilities

“If you’re moving for talent or moving your existing team, ask yourself, ‘Can I do this remotely?’ We have employees in nine different countries and have offices in the U.S., Canada, Australia and the Philippines. It allows us to scale faster and more efficiently than any local company because when we need more talent, we just hire it regardless of where it is.” ~ Liam Martin, Staff.com

Sourced from: http://smallbiztrends.com/2014/02/relocating-your-company.html