The sudden fall in the prices of crypto coins has risen concerns over the feasibility of mining operations. Although, mining operations are still lucrative in few parts of the world; slump in the price of Bitcoin has made way for diversification in the mining industry by allowing the establishment of mining farms in countries where electricity cost are lower than in China
Better services — New opportunities
Since the beginning of 2019, the prices of bitcoin has allowed a number of mining companies to control a huge portion of the network’s hash rate. And while competing mining farms offered reduced fees and better ROI, the major and established mining farms out-marketed new entrants; moreover, the major farms had the cash flow to very easily grow their hash rate, thereby scaring off new entrants.
And of course with mining, the hash rates are not rising but depreciating.
Since the market leaders have become complacent and no longer improve on their mining farms, new market participants are encouraged to enter the market with confident, knowing that they can also share from the hash rate. Few of these new mining companies have been smart enough to launch their operations in countries with low electricity cost — this has allowed them to be able to compete with the giants of the mining industry.
Moreso newer mining farms are implementing disruptive strategies such as low fees, provision of better service, and transfer of all generated revenue to users and investors.
MinedBlock, is a new mining operation startup that aims to lead the shift to a more globalized presence in mining industry. The mining farm is hosted in Iceland after the team considered several factors such as electrical cost, climate and political factors. This location will open its users and investors to some unique set of amazing benefits.
The Current Condition of the Mining Industry
Major mining establishments have enjoyed the lack of genuine competition for a long time. This has allowed them to control a hefty percent of the mine’s block rewards, charge high fees in their mining operations and even keep transaction fees from block rewards.
- AntPool This company has asserted its dominance over the market and kept competition at bay for a long time by mounting several rigs to monopolise the market. This has allow them to not only control 2.5% of block rewards, but also keep transaction fees.
- BTC.com BTC.com has kept the completion on with AntPool. Although the company doesn't charge 2.5% on block rewards, other fees by BTC.com which adds up to 4% are more than what AntPool takes.
- F2Pool Contrary to what the name may suggest, being a part of this pool is nothing close to free. The pool takes 3% of block rewards and also hold on to the transaction fees. 90
In addition, F2Pool and AntPool have neglected and done little to nothing about the returns of the users. An evident event to this is the farm's operations on Bitcoin Core 0.9.5 which caused them to miss out on possible tens of thousands of dollars during the fork of July 4, 2015. Those funds were the due gains the users — negligence from the part of the pool led to a big loss to the users
MinedBlock to deploy strategies that attract investors and breaks into the market
New market entrants, like MinedBlock, are keen on boosting the quality of their service in order to command increased market share. Hence, they keep their mining operations up-to-date with the latest equipments such as ASIC Bitcoin and Bitcoin Cash mining units and GPU mining rigs.
More importantly, MinedBlock is ensuring that the hash rate is not concentrated in only one country as they plan to build more farms and mount more mining rigs across Europe. This will enable them to utilise many opportunities that are available across the globe.
For instance, MinedBlock, takes advantage of the incredibly low energy costs in Iceland. While the costs of energy are at $0.08 kWh in most regions of China, it is about 2 times lower in Iceland. This reduces the operation cost significantly for the miners thereby increasing their mining profit. Operations remain very profitable for MinedBlock even if the current price of bitcoin forces some major mining companies to barely break-even.
Security Token Offering
MinedBlock is a SEC-compliant project that will offer it's MBTX tokens as a security tokens. To satisfy the requirements of the US Securities and Exchange Commission (SEC); US investors will need to qualify as Accredited Investors. MinedBlock is In fact the first mining company that is offering a security token and is also registered with SEC.
Location advantage
Unlike the Chinese government who have very strong stand against cryptocurrencies and Crypto-related establishments, North European governments and the Scandinavia are leading the way in adopting and accommodating cryptocurrency. This encouraging environment allow mining facilities like MinedBlock, to gain access to insurance services. Thus, the assets mined by MinedBlock will be insured, giving users and investors increased guarantee about their investment and profits.
Highlight
MinedBlock has designed structure that will only charge an initial contract fee; after which there will be no further cuts in users’ block rewards or transaction fee profits.
Official MinedBlock Community links
Web: https://www.minedblock.io/
Telegram: https://t.me/MinedBlockOfficial
Twitter: https://twitter.com/mined_block
Whitepaper: https://www.minedblock.io/assets/MinedBlockWhitepaper.pdf
Username: Kryptarion1
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I have given up on hardware based mining. Too little return on investment and quickly obsolete hardware. At this point there seem to be better ways to make crypto.
Hello @kryptarion
Excellent post. But I wonder, the governments of Northern Europe and the Scandinavians, even though they agree with mining and cryptocurrencies, doesn't it affect the electricity consumption of those countries? Does MinedBlock mining provide enough economic income to make it profitable? In other words, does the profit obtained from MinedBlock mining exceed the cost of electricity consumption plus the cost of mining equipment? In the case of a normal person who wants to become a miner.
Electricity here in Venezuela is cheap, but mining equipment is expensive. In Europe, I think it's backward. Or am I wrong?
By the way, does Bounty0x have anything to do with Publish0x?
Thanks for sharing
Thank you @jadams2k18, I'm glad that you like the post.
I'm sure these countries have enough supply to accommodate further consumption from mining.
MinedBlock plans to mine more than only one cryptocurrency. Conventional farms only mine bitcoin. MinedBlock will create a dedicated mining facility which focuses on mining multiple coins from within the top 50 by market cap to ensure a diverse range of revenue streams for customers to benefit from.
Bounty0x is a platform where cryptocurrencies project and their bounties are hosted. Publish0x is a content platform almost similar to steemit where contents are posted and the winters and readers are both compensated for their activities on the platform....
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You are very welcome
Oh, that's great. It really has more advantages than the competition, possibly even consumes less energy. They're excellent news
Thanks for the information
I have an account on Publish0x
Have a nice day
This is just my personal opinion. I just think PoW is just too old school. Different types of PoS gives better incentive IMO because those who mine are the same people who HODL. With a token lockup like STEEM things become extra true.
Good to know that Scandinavia is favourable to crypto. For those who do plan to mine, the cold temperature should help too. I'm thinking if we could find a way to use mining heat to heat homes during winter. that should be really cool.
Hi @d-zero
Big thx for sharing your opinion. Appreciate your time :)
Enjoy your sunday,
Cheers,
Piotr
Very interesting read, may jump onboard in the near future!
You are right, many famous mining companies are in Iceland and still profitable!
I think that in the world of mining must attend events of this indole to give a balance to the business.
interesting post, the cryto mining is feasible as long as the necessary factors are taken into account to make it a success. In some cases it can be slow.
I miss the old days when mining bitcoin was really easy and profits were high. Doing mining with bitclubnetwork so far we are still mining but profit is so little these days.
Hopefully, there is other ways to mine crypto and earn steady profits in the future.
Other than that haven't have time to check on another crypto due to high cost of living and ridiculous amount of work on a daily basis even my writing have reduced tremendously here in partiko.
Do update us would love to know more in the future
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@ragnarhewins90, I didn't know you mined bitcoin. It must be some experience you got there.
I believe that MinedBlock is a revolutionary game changer, and a very near future of cryptocurrency mining. They are adopting some good strategies that are environmental friendly and will generate huge returns for their users and investors.
I post reviews like this regularly, you can check my blog for good contents. 👍
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Thank you brother. Yea I mined bitcoin for 2 years now with bitclub network it was very profitable. I'm lucky I made money before bitcoin price drops.
But I was shocked today bitcoin price soared at 7k USD can't wait to withdraw again hehe
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I think that mining is a potential rabbit hole that I don't want to go down. From what I've read, mining isn't a sustainable direction for those of us involved overall with the blockchain and cryptocurrency. I do realize it's usefulness and necessity, and unless I'm blessed with a benefactor, I don't see mining in my future.
Minar crypto in my country (venezuela) for users to say common as I am, is a very difficult issue due to the equipment we have, electric service and profitability, it is a slow process and therefore has not been paid attention as an investment method to generate economic benefits.
Keeping an mining operation a float is tough. Especially at scale. Of course lowering the power cost is key and if green energy can be used to mine it's great.
The idea behind this isn't new at all. Mr. Streng (genesis mining) used the "green" aspect of his operation in Iceland for years as one of his marketing punchlines. In fact his decision to place his operation in Iceland is probably the only reason they still exist.
My primary concern for all mining operations in Iceland lies in the discussion about how "green" exactly is energy there.
"As they point out, the process of creating “clean” energy is not so green, after all. For one thing, constructing new hydroelectric dams alters landscapes and topography irreversibly by sinking virgin countryside and changing the nature of rivers and waterfalls. Geothermal power stations must be constructed over natural hot spring areas to access the heat coming out of the earth’s core. This also permanently alters Iceland’s untouched landscape"
Source https://www.ccn.com/bitcoin-miners-unphased-iceland-cold-shoulder
So to me the risk of adjusted, rising power prices especially for mining operations that do little to nothing for the local economy in Iceland must be taken into account for any potential investment in these operations as well.
Cheers!
PS: @crypto.piotr pointed this article out to me and invited me to comment!
Wow..... I'm impressed by your comment @doifeellucky. Really I just leant this now from ur comment. Thanks again for your insight, I'm glad you commented with ur ideas. 👍👍👍
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Thank you!
It's an interesting field in the crypto arena to me since I myself ran a mining operation (at some scale for me at least ;-)) for a few years. It's a tough business and especially the bars for mining Bitcoin at scale and at a profit are scary high IMO.
This not only applies for the times we're in right now where breaking even in these operations already is not easy with the markets prices we see now.
I see another one of the greater risks in nation states becoming involved in Bitcoin mining at next level if prices will surge again and IMHO they will surge absurdly.
If only a fraction of the estimations in possible rising Bitcoin prices for the next decade will become a reality it might be game over for many mining operations world wide because the nation states could step in big time at level's we can't even grasp at the moment.
Just play around with some numbers and take a few per mille points of tax revenue of any given nation state and see what they could do with this in mining Bitcoin. It might even come to a level of economic "weaponization" of Bitcoin.
Sounds nuts right? ... and maybe, hopefully it is.Hahaha!
Cheers!
I think you have a point here, I think with rate at which the mining market is going
— together with the green light bitcoin is showing of a potential hike in price, states could be tempted to take on the market. And like you said, it will pose a big risk to the companies trying to mount farms.
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I'm totally solar powered steem power for real.
Got the van outfitted for offgrid solar power and rocking it!
Yeah energy is the biggest point. Besides my van electric system and the huge battery? That's how I work with my blog and Crypto.
Get it! And nice bounty! Following and voting!
@kryptarion, Yes, there is not much Competition in Mining but in my opinion it will not going to be a long story because more the Cryptocurrency and Blockchain space receive adoption more will enter into this space.
@chireerocks, before now only few mining pools existed. This has made them monopolise the market and only profit themselves. These few pools had in fact killed individual mining by controlling a huge part of the hash rates. New companies like MinedBlock are bringing ''Green mining'' to the market.
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Let's hope that balance will be brought once again.
I do think there is long term potential in mining. Technology just has to catch up with the demand. Look at the ant miners and how they have increased their mining speed with each new version. This whole ecosystem is still very new, I think in a few years will have technology that can more adequately mine blocks, with less power consumption and make mining a reachable goal for the average person. that's just my two cents~ :D
You are very correct @jacuzzi, mining has an interesting prospect. And new projects like MinedBlock are adopting latest ''green mining'' strategies with cutting edge equipments that will make mining meet the market demand and profitable for the users
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Wow! thumbs for the information and analysis.
I think is a key factor is keeping up with the performance of BTC. It is a very important aspect to tackle.
In all, I do admire this initiative and I hope it gets to hit the ground running at full esteem.
Do have a great buddy, cheers!
Very interesting project dear @kryptarion
Dear @kryptarion
Thank you for sharing this link with me. Good read. I promoted it a little bit and shared with number of people who I know that they are interested with blockchain tech.
Upvote on the way :)
Yours
Piotr
Thank you @crypto.piotr. I am very glad that you helped me spread it with the community. 👍👍👍
I value your work and friendship @kryptarion
So I will gladly help whenever I can. Just please do me a favour and check our own wallet sometimes and if I share someones else publication then have a look at it and see for yourself if you find it interesting (and worth commenting).
Yours
Piotr
I am new to this so I can not say much, but I like a good read, learning new stuff :)
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Thank you for stopping by. You can always check my blog for interesting reviews
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Hi @kryptarion
Very good article on mining
Re-steemed
a thank to @crypto.piotr who led me to your post
Thank you @xpilar. I'm glad you like article
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Dear @kryptarion
In conclusion the biggest prize will be taken by the one that offers the best and cheapest services, and the investors are good hunters of that to be able to have a return on their investment in the three times in which the cost value of the benefit can be measured, "A short term "," medium term "and" long term "in those three times your investment must be well defined, with any of these companies that can provide those services.
Thank you @lanzjoseg, I'm impressed by ur insight 👍👍
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amigo creo que la sostinibilidad ya esta basada en la criptografia ya que no se sabe si en algun futuro pueda tener grandes ganancias, ya dice el bitcoin puede valer mas que otra moneda.
Hello friend, thanks for sharing the information.
Unfortunately some of us can not pay for the equipment that allows this mining activity. But it sounds really interesting to have the opportunity to become a miner.
Take care.
Mining used to be an individual thing where ppl could use their computers to mine bitcoin. Until pool owners came to monopolise the market — now mining has evolved to where sophisticated computers and equipments are used. Mining is no longer profitable for individuals anymore. But with startup companues like MinedBlock, even people who can not afford to get the equipment and the rigs required can still mine bitcoin and other coins at a profit.
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Interesting🤓
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Hi @crypto.piotr and @kryptarion
The investment that anyone who wants to enter the world of the mining will be the determinant to receive great rewards, this will also depend on how well you report and where you want to invest, which of the many cryptocurrencies that exist is the most viable either short medium or long term. I believe that there are currently many cryptocurrencies and to invest here in Venezuela is complicated, since mining equipment is very expensive despite the fact that electric service is very economical but currently there are many failures or cuts due to overvoltage. it produces that they take away from 6 to 12 daily hours of light, that would not help a lot to the mining since with the lows of light they can damage the equipment.
I used Google Translator
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