Chances are that not many of us active in the crypto space right now have actually had the opportunity to mine Bitcoin with just a simple laptop. In the early days of Bitcoin, it was possible to mine a few bitcoins per month using a laptop as mining equipment. Those were the good old days, but my take is that very few have actually held onto the bitcoins they easily mined back then.
Currently, most of the miners that keep the network running are large mining pools valued at multi-millions of dollars. Thus, we can say that the Bitcoin mining process is not as decentralized as it used to be. The same goes for token distribution, but that's a story for a future post, specifically dedicated to those cheering for BlackRock's entry into Bitcoin.
The "tokenization of everything" is a concept that has been discussed in the crypto world for quite a few years. I realized its potential when I first heard about Hive's #movetoearn app, @actifit. I stand by my belief that in the future, we will have access to a more decentralized economy through various tokenization services.
For this reason, I want to delve into the topic of "tokenized Bitcoin mining" today. As mentioned earlier, getting into Bitcoin mining as a retail investor is almost impossible these days due to the high requirements for hashing power on the Bitcoin network, which very few can afford to meet.
Then there's the technical aspect of getting into such a "business." You need to have a good amount of technical knowledge to set up your mining farm, maintain it, and stay up to date with everything in this field. Personally, I lack the technical expertise to engage in Bitcoin mining, even if I had the funds to purchase the required equipment.
NFTs were the clear hype of the past bull cycle, but as I stated a couple of years ago, while the hype may fade, as seen with the overly hyped Bored Ape Yacht Club (BAYC), fundamentals will remain. In this context, there's a project called Gomining that tokenizes hash rate by essentially turning mining rigs into NFTs.
How does this work? Well, it's pretty simple, but not that simple...
To gain access to Bitcoin mining rewards without owning the necessary equipment, one can purchase specific NFTs from Gomining. These NFTs represent a certain amount of hash rate on the Bitcoin network, and the holder receives a percentage of the mining rewards that the company earns from actually mining Bitcoin.
Gomining's plan is to reach around 20% of the total hash power mining Bitcoin within a couple of years through their hashing power "located in six different countries", and they plan to achieve this goal by selling NFTs. But could all of this be a Ponzi scheme, with Gomining not actually mining Bitcoin? I don't know, so do your own due diligence before buying any NFT from them and expecting to get your hands on some mining rewards based on the NFT you acquire.
According to their official site, they have over 2,000 unique NFT holders who have received more than 2,000 BTC over the last two and a half years. Each NFT represents a tokenized portion of the total hash power the company possesses, and they even have a native token called GOMINING, formerly named GMT.
Holders receiving GMT can choose to stake it to earn more or use it to pay fees. What's important, however, is that if legitimate, a company like this enables retail investors to access a share of mining rewards by purchasing Gomining NFTs. This demonstrates that "the tokenization of everything" is progressing, and we will undoubtedly see more real-world use cases like this.
Before jumping to buy any NFTs from Gomining, please conduct your own due diligence. The crypto world is rife with scams. The project could be legitimate, but I have no proof in this regard. The concept sounds promising, but we must remain vigilant in this space.
Thanks for your attention,
Adrian
Posted Using LeoFinance Alpha
I agree, the concept of tokenized Bitcoin mining is undeniably intriguing, offering a potential entry point for retail investors into the mining rewards space that has become increasingly dominated by large players.
Ensuring the legitimacy and transparency of projects like Gomining is essential, given the history of scams in the crypto world. It's a promising development, but cautious exploration is warranted.
Word.