Alliance Resource Partners (ARLP), a coal mining company in the U.S., recently disclosed its use of underutilized electricity loads for bitcoin mining. Cary Marshall, the company’s CFO, revealed that ARLP concluded the first quarter of 2024 with an approximate total of 425 bitcoins. Marshall also stated that during the first quarter, ARLP mined 61 bitcoins […]
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How To Mine Bitcoin And Crypto | Guide
Mining Bitcoin is the cornerstone of the BTC network, providing both security and new Bitcoins into circulation. This essential process involves powerful computers solving complex mathematical problems to validate transactions on the network. As a reward for this computational work, miners receive new bitcoins, making it a potentially lucrative endeavor.
In this guide, we will explore the key aspects of “How to mine Bitcoin.” From understanding the basic mechanisms of how mining Bitcoin works to evaluating its economic feasibility, including the costs, potential earnings, and the time it takes to mine a single BTC. We’ll also guide you through the practical steps of setting up a mining operation, including choosing the right Bitcoin mining rig and the necessary software.
Moreover, for those looking to expand their mining activities beyond Bitcoin, we’ll cover the essentials of mining cryptocurrencies. We’ll introduce various crypto mining software and tools, providing a comprehensive view of the wider crypto mining landscape.
How To Mine Bitcoin
Mining Bitcoin is the process through which new bitcoins are released and transactions are added to the blockchain. At its heart lies the Proof of Work (PoW) algorithm, which requires miners to solve complex mathematical problems to validate transactions. Miners compete to complete these problems first, and the winner receives Bitcoin rewards.
This process inherently involves the difficulty adjustment, which ensures that the rate of block creation remains constant, and the hash rate, which is a measure of the processing power of the Bitcoin network. These elements combine to form the backbone of Bitcoin mining, securing the network and enabling the decentralized control that Bitcoin is renowned for.
Mining Bitcoin Explained
Bitcoin mining is a complex and multifaceted process, crucial for both the creation of new Bitcoins and the maintenance of the network’s integrity and security. Here’s an in-depth look at its key aspects:
Proof Of Work
Proof-of-Work (PoW) is a critical blockchain consensus mechanism that dates back to 1993 when Cynthia Dwork and Moni Naor first conceptualized it to deter email spam and DoS attacks. Adam Back’s Hashcash in 1997 advanced this concept by incorporating computational difficulty to combat email spam. These early forms of PoW laid the groundwork for Bitcoin’s implementation by Satoshi Nakamoto in 2009, which effectively solved the double-spending problem in digital currencies without the need for a centralized authority.
Bitcoin’s PoW operates like a computational lottery, with miners vying to solve cryptographic puzzles using the SHA-256 hash function. The more computational power a miner contributes, the higher their chances of solving the puzzle and receiving the block reward in Bitcoin. This mining process is fundamental to Bitcoin’s decentralized security and transaction validation.
The difficulty of mining adjusts approximately every two weeks or every 2,016 blocks, maintaining an average block time of around 10 minutes. This adjustment is crucial for the network’s stability, ensuring a steady rate of new block creation and coin issuance despite changes in network hash rate. The Bitcoin block reward, initially 50 BTC per block, halves every 210,000 blocks, a mechanism known as Bitcoin halving. This built-in deflationary aspect of Bitcoin is designed to gradually reduce the issuance of new coins.
PoW’s significance lies in its ability to secure the Bitcoin network through decentralization. By incentivizing miners across the globe to contribute computational power, it replaces the traditional role of central authorities in validating transactions.
Hash Rate
The hash rate, a critical metric in mining Bitcoin, refers to the total processing power utilized by miners on the network. It indicates how many calculations per second the network can perform, where a higher hash rate reflects greater security and mining difficulty. The hash rate directly influences the competitiveness among miners and the overall efficiency of the mining process. As Bitcoin’s price increases, more miners are encouraged to join the network, pushing the hash rate higher and making the mining process more competitive and energy-intensive.
Difficulty Adjustment
Bitcoin’s protocol includes a dynamic mechanism called difficulty adjustment, ensuring that new blocks are discovered approximately every 10 minutes. This adjustment occurs every 2,016 blocks, or roughly every two weeks, based on the total hashing power of the network.
If blocks are mined too quickly, the difficulty increases, making it harder to find new blocks. Conversely, if the block interval is slower than expected, the difficulty decreases. This self-regulating system maintains a stable block discovery rate, balancing the network against fluctuations in miner numbers and equipment efficiency.
Bitcoin Mining Economics Explained
Bitcoin mining economics encompass various factors such as computational power, energy costs, and market dynamics. Understanding these factors is crucial for any miner or investor who wants to know “how to mine Bitcoin.”
How Do You Mine Bitcoin?
Mining Bitcoin involves two major steps: building a block and proving the block. The former includes selecting and processing transactions for inclusion in the new block, while the latter involves solving a cryptographic hashing puzzle. This puzzle, part of the Proof-of-Work consensus, requires miners to generate a hash below the network’s target hash using high-powered computer hardware, typically ASIC miners. Once a miner successfully solves the puzzle, they broadcast the new block to the network, which is then verified by other miners.
Can You Still Mine Bitcoin?
Yes, individuals can still mine Bitcoin. However, it has evolved into a highly competitive and resource-intensive endeavor, with public listed companies taking the lead. Among the top mining companies are Marathon Digital (MARA), Riot Blockchain (RIOT), Canaan (CAN), Hut 8 (HUT), Cipher (CIFR), Core Scientific (CORZ), Bitfarms (BITF), Iris Energy (IREN), CleanSpark (CLSK) and Bitdeer Technologies.
The block reward, which includes both the block subsidy and the transaction fees, is the core incentive for miners. Currently, the block reward is higher than the transaction fees, but this will eventually change with one of the next Bitcoin halvings, but also depends on the evolution of the Bitcoin price.
How Long Does It Take To Mine A Bitcoin?
The time it takes to mine a Bitcoin is not fixed and depends on several factors, including the miner’s hash rate, the total network hash rate, and the current mining difficulty. The protocol is designed to adjust the difficulty to maintain an average block time of about 10 minutes.
However, for an individual miner, especially one with limited resources like one mining rig, mining a single Bitcoin can take years. This often leads solo miners to join mining pools to increase the chances of earning rewards more frequently.
Growing Trend In Mining Bitcoin: Renewables
Research by environmentalist Daniel Batten suggests that mining Bitcoin can become carbon negative by utilizing waste methane as an energy source. Around 30% of the global temperature rise is attributed to methane, which has 80 times the warming power of carbon dioxide. Notably, 11% of global methane emissions come from landfills. Bitcoin mining can convert this waste methane into carbon dioxide, significantly reducing its environmental impact. Batten himself aims to generate 32 megawatts of power from landfills, offsetting about 4 million tonnes of carbon dioxide, which equates to 10% of Bitcoin’s carbon footprint.
In their latest research, the Bitcoin Mining Council’s (BMC) highlighted significant strides in sustainability and efficiency within the Bitcoin mining industry. The BMC, representing 45.4% of the global Bitcoin Mining Network, reported that its members are utilizing electricity with a 67.8% sustainable power mix. This figure reflects an estimated global average of 59.4% for the industry, marking an approximately 3% year-on-year increase from 2021. This progress positions the Bitcoin mining industry as one of the most sustainable globally.
How To Start Mining Bitcoins: A Step-by-Step Guide
Embarking on the journey of mining Bitcoin requires a strategic approach, starting with the selection of the right equipment.
Selecting the Right Bitcoin Mining Rig
Choosing the appropriate Bitcoin mining rig is critical for efficiency and profitability. The ideal rig should balance power, energy consumption, and cost. ASIC miners are the standard in mining Bitcoin due to their superior hash rates and energy efficiency compared to GPUs or CPUs.
When selecting an ASIC miner, consider factors like hash rate, energy consumption (measured in watts), cost, and the miner’s longevity. Higher hash rates increase the chances of successfully mining a block, but they also come with higher energy demands and costs. Balancing these factors based on your budget and the current Bitcoin mining landscape is key to a successful mining operation.
Comparison Of The Best Bitcoin Mining Rigs
Here’s a comparison of some of the best Bitcoin mining rigs in 2023:
- Bitmain Antminer S21 Hyd: Latest Bitcoin miner by market leader Bitmain, released in September 2023. It delivers a hashrate of 335 Th/s while consuming 5360 W of power, available for pre-order at ,897.16. It features a hydro-cooling system and is designed for high efficiency and adaptability to various environmental conditions.
- Bitmain Antminer S21: Offers a hashrate of 200 Th/s at a power consumption of 3010 W, priced at ,500. Known for its air-cooling system, it operates effectively in environments with temperatures up to 45 degrees Celsius.
- Bitmain AntMiner S19 Pro: Hash Rate 110 Th/s, Power Consumption 3250 W, Price ,230. High hash rate, but expensive and power-intensive.
- Bitmain Antminer S19 XP Hyd: Hash Rate 255 Th/s, Power Consumption 5346 W. Known for its extraordinary power and efficiency, it is the most powerful individual miner on the list. User-friendly interface, but price at ,600.
- Whatsminer M30S++: Hash Rate 112TH/S, Power Consumption 3472 W, Price ,455 (used). Very powerful but more expensive and not ideal for beginners.
- Canaan AvalonMiner 1246: Hash Rate 90Th/s, Power Consumption 3420W, Price ,890. Fast hash rates and efficient, but comes with high noise levels.
- Ebang Ebit E11++: Hash Rate 44 Th/s, Power Consumption 1980 W, Price 0 (used). Efficient and reasonably priced, but not ideal for home mining due to high noise levels.
Mine Bitcoins Software: Installing And Configuring
Selecting the right software is crucial for efficient Bitcoin mining. Here are some of the best Bitcoin mining software options in 2023:
- CGMiner: Best overall for its ease of use and comprehensive features. It supports ASICs, GPUs, and FPGAs and runs on Windows, Mac, and Linux. However, it might be challenging for beginners due to its command-line interface.
- MultiMiner: Ideal for beginners, offering an intuitive platform and easy setup. It’s optimized for Windows, with additional software required for Mac and Linux. While user-friendly, it may lack advanced features.
- BFGMiner: Designed for advanced miners, this software offers extensive customization options and supports multiple coin mining. It’s compatible with various operating systems but is not suitable for beginners.
- Awesome Miner: Great for large-scale mining operations, allowing management of multiple rigs and pools from a single dashboard. It supports over 50 mining engines but may be complex for beginners and lacks MacOS compatibility.
- NiceHash: Best for cloud mining, this platform facilitates the trade of hashing power. It’s easy to use and set up, with a mobile app available, but comes with service fees and fluctuating bid pricing on hash power.
Bitcoin Mining At Home: Worth It?
Bitcoin mining at home can be challenging due to factors like hardware costs, high energy consumption, noise, and heat. While it offers a way to participate in the Bitcoin network, the profitability largely depends on electricity costs, hardware efficiency, and Bitcoin’s market price. For hobbyists or those with access to cheap electricity, it can be a viable option. However, for most individuals, joining a mining pool or cloud mining may be more practical and cost-effective.
Notably, the estimated electricity cost of mining one Bitcoin varies globally. The following map by CoinGecko shows the estimated cost, based on the average price of electricity.
Exploring Crypto Mining
Mining cryptocurrency extends far beyond Bitcoin, offering opportunities to mine a variety of altcoins. Altcoins, or alternative cryptocurrencies, have different technical underpinnings, mining mechanisms, and market dynamics compared to Bitcoin.
Mining Cryptocurrency: Which Altcoins You Can Mine
While Bitcoin remains the most well-known and mined cryptocurrency, several altcoins present attractive alternatives for miners. Here are some notable altcoins that use a Proof-of-Work and are popular in the mining community:
- Litecoin (LTC): Often referred to as the silver to Bitcoin’s gold, Litecoin offers a faster block generation time and uses the Scrypt hashing algorithm. This algorithm is less memory-intensive than Bitcoin’s SHA-256, allowing miners to use less powerful hardware.
- Dogecoin (DOGE): Originally created as a meme, Dogecoin has grown in popularity and credibility. It also utilizes the Scrypt algorithm and can be mined with the same hardware used for Litecoin, making it a viable option for those looking to diversify their mining activities.
- Monero (XMR): Monero focuses on privacy and decentralization. Its mining algorithm is designed to be ASIC-resistant, favoring CPU and GPU mining. This approach ensures a more egalitarian distribution of mining rewards, making it an attractive choice for individual miners.
- Zcash (ZEC): Zcash emphasizes privacy and anonymity in transactions. It uses the Equihash algorithm, which is also resistant to ASIC mining. This characteristic levels the playing field between individual miners and large mining operations, making GPU mining more effective.
- Dash (DASH): Known for its fast transaction speeds, Dash operates on a X11 algorithm, which is a combination of 11 different hashing algorithms. This complexity makes it more resistant to ASIC mining, allowing for a broader range of hardware to be used for mining.
Crypto Mining Software
Crypto mining software is essential for connecting your hardware to the blockchain or mining pool. Different cryptocurrencies often require specific software due to their unique algorithms and mining processes. Here, we’ll focus on the recommended mining software for Litecoin, Dogecoin, and Monero, three popular altcoins in the mining community.
Litecoin And Dogecoin Mining Software
- CGMiner: This is a versatile, open-source mining tool that supports a wide range of cryptocurrencies, including Litecoin and Dogecoin. It’s compatible with ASIC, FPGA, and GPU hardware and is known for its stability and efficiency.
- EasyMiner: A user-friendly graphical interface makes EasyMiner a good choice for beginners. It works well with Litecoin and Dogecoin and offers a ‘Moneymaker’ mode, which automatically configures your miner for mining Litecoin on its own pool.
- MultiMiner: Ideal for those new to mining, MultiMiner features a graphical interface and is compatible with hardware mining Litecoin and Dogecoin. It offers direct access to mining engine arguments and API settings.
- Awesome Miner: This is a powerful tool suitable for larger-scale mining operations. It supports Litecoin and Dogecoin and offers comprehensive management features for various mining rigs and pools.
Monero Mining Software
- XMRig: XMRig is a high-performance Monero (XMR) CPU miner, with official support for Windows. It’s widely regarded as one of the most efficient and versatile miners for Monero and offers detailed statistics about your mining operations.
- MoneroSpelunker: This is a simple, easy-to-use GUI miner for Monero, making it ideal for beginners. While not as efficient as XMRig for advanced users, it’s a good starting point for those new to Monero mining.
- MinerGate: MinerGate is a mining pool that also offers a GUI mining solution. It supports Monero and allows you to mine various cryptocurrencies simultaneously without reducing the hash rate for the major coin.
- SRBMiner-MULTI: This miner supports CPU mining of Monero and various other coins. It’s known for its efficiency and the ability to mine multiple currencies at the same time.
Best Crypto Mining Tools
In addition to mining software, there are various tools that can enhance the mining experience, improve efficiency, and manage your mining operations effectively. These tools include:
- Mining Operating Systems: Specialized mining operating systems like Hive OS or SMOS (SimpleMining OS) can optimize your mining hardware’s performance. They offer easy setup and management of your mining rigs, whether you’re mining Litecoin, Dogecoin, Monero, or other cryptocurrencies.
- Hardware Monitoring Tools: Software like MSI Afterburner or HWiNFO can monitor your mining hardware, providing real-time data on temperature, fan speed, and performance. This is crucial for maintaining your hardware’s longevity and efficiency.
- Mining Profitability Calculators: Websites like WhatToMine or CoinWarz allow miners to calculate potential profits from various cryptocurrencies, considering factors like hash rate, power consumption, and current market prices. These tools are vital for assessing the viability of mining different altcoins.
- Pool Management Tools: If you’re part of a mining pool, tools like PoolWatch.io or Mining Pool Stats can help you track your performance, payouts, and the pool’s overall statistics.
- Cryptocurrency Wallets: Secure storage for your mined coins is crucial. Each cryptocurrency typically has its own recommended wallets, but in general you should prefer hardware wallets (“cold wallets”) over software wallets for the highest level of security.
The Economics Of Mining Bitcoin And Cryptocurrencies
The economics of mining Bitcoin and other cryptocurrencies is a critical area for anyone considering entering this field. It involves understanding the costs associated with mining and the potential returns. This section will cover the fundamentals of calculating these costs and returns, providing insights into the financial aspects of cryptocurrency mining.
Calculating the Costs and Returns of Mining
To understand the economics of mining, one must first be able to calculate both the costs involved and the potential returns. Here are the key factors to consider:
- Hardware Costs: The initial investment in mining hardware, such as ASIC miners for Bitcoin or high-end GPUs for crypto mining, is usually the most significant expense. The choice of hardware impacts both the efficiency and the potential earnings from mining.
- Electricity Costs: Mining consumes a substantial amount of electricity. The cost of power can vary widely depending on geographic location and can significantly impact overall profitability.
- Maintenance And Overhead: This includes costs related to cooling systems, internet connectivity, hardware maintenance, and any other operational expenses.
- Mining Pool Fees: If you join a mining pool, which is common, especially for Bitcoin mining, you will have to pay fees, which are usually a percentage of the earnings.
- Network Difficulty And Hash Rate: These are dynamic variables that affect how much you can earn. Higher network difficulty and hash rate mean more competition, potentially reducing individual earnings.
- Cryptocurrency Value: The price of the cryptocurrency being mined is perhaps the most volatile factor. Higher prices can lead to higher earnings, but the opposite is also true.
The return on investment (ROI) is calculated by comparing the total costs (including the initial investment and ongoing expenses) against the revenue generated from mining. Calculators like CoinWarz and CryptoCompare can help estimate profitability based on current conditions.
How Much Does Mining Make?
The earnings from mining can vary greatly and are influenced by several factors:
- Bitcoin Mining: The profitability of mining Bitcoin has decreased over time due to increased competition and halving events, which reduce the block reward. Large-scale operations in regions with cheap electricity are generally more profitable.
- Crypto Mining: Some altcoins may offer higher profitability than Bitcoin, especially for individual miners or small setups. However, their market value can be more volatile, impacting earnings.
- Market Conditions: The cryptocurrency market is highly volatile. Significant price swings can dramatically affect mining profitability.
- Efficiency: The efficiency of your mining setup, including the hash rate of your hardware and your operational efficiency (like cooling and electricity costs), plays a crucial role in determining profitability.
- Pool Earnings: Joining a mining pool can result in more consistent, albeit smaller, earnings compared to solo mining.
On average, the daily earnings for a miner can range from a few dollars to several hundred, depending on these factors. It’s crucial to conduct thorough research and calculations based on current market conditions and individual circumstances to get a realistic estimate of potential earnings from mining.
FAQs: How To Mine Bitcoin
This section addresses some of the most frequently asked questions about Bitcoin and cryptocurrency mining, offering clear and concise answers for both newcomers and experienced miners.
How to Mine Bitcoin?
To mine Bitcoin, acquire specialized mining hardware (ASIC miners are recommended), choose and install suitable mining software, and either set up a solo mining operation or join a mining pool. Additionally, create a secure Bitcoin wallet for receiving mining rewards.
How To Start Mining Bitcoin?
To start mining Bitcoin, you need to invest in appropriate hardware (like ASIC miners), choose mining software, join a mining pool if desired, and set up a Bitcoin wallet to store your rewards. Ensure you have a reliable power source and internet connection.
How Do You Mine Bitcoin?
Mining Bitcoin involves using specialized hardware to solve complex mathematical problems. Successful miners receive Bitcoin as a reward for adding new blocks to the blockchain. The process requires significant computational power and electricity.
Can You Still Mine Bitcoin?
Yes, you can still mine Bitcoin, but you’ll face fierce competition and a resource-intensive process. It necessitates significant investment in hardware and electricity.
What Is The Bitcoin Generator?
The term “Bitcoin generator” is often associated with scams. Legitimate Bitcoin mining is the only way to generate new Bitcoins, and it involves computational work using mining hardware.
How Do You Mine For Bitcoin?
You mine for Bitcoin by setting up mining hardware, running mining software, and participating in the network to validate transactions and discover new blocks. This process often involves joining a mining pool.
How To Make Bitcoin?
Besides mining, you can make Bitcoin by trading, participating in affiliate programs, offering goods or services for Bitcoin, or through Bitcoin faucets, although the latter often provides minimal returns.
How To Start Bitcoin Mining?
To start Bitcoin mining, research and purchase efficient mining hardware, decide between solo mining and joining a pool, download and configure mining software, and set up a secure Bitcoin wallet for payouts.
How Do I Generate Bitcoins?
Mining produces Bitcoins. This involves using computational power to solve cryptographic puzzles, thereby validating transactions and creating new blocks on the Bitcoin blockchain.
How To Bitcoin Mine?
Bitcoin mining requires specialized hardware (ASICs), mining software, and a stable electricity and internet supply. You can mine independently or join a pool to increase your chances of earning rewards.
How To Mine For Bitcoin?
To mine for Bitcoin, acquire suitable mining hardware, select and configure mining software, ensure a stable power and internet connection, and consider joining a mining pool to improve your chances of earning rewards.
How Are Bitcoins Created?
During the mining process, miners tackle complex mathematical problems to validate transactions and bolster the network’s security, thereby generating new Bitcoins as rewards for their work.
How To Generate Bitcoins?
The only legitimate way to generate Bitcoins is through mining. Be wary of any service claiming to generate Bitcoins without mining, as these are likely scams.
What Is A Bitcoin Mine?
A Bitcoin mine refers to a setup where Bitcoin mining takes place. It typically involves a series of computers (miners) working to solve mathematical puzzles that validate transactions and create new Bitcoins.
How Do You Mine Bitcoins?
Mining Bitcoins involves setting up mining hardware, installing mining software, solving cryptographic puzzles to validate transactions, and being part of the network that maintains the blockchain.
How Do You Mine Cryptocurrency?
Mining cryptocurrency generally involves setting up a computer system with specialized hardware and software to solve mathematical puzzles, validate transactions, and secure the network of a specific cryptocurrency.
How Is Crypto Mined?
Crypto mining involves using computers to solve complex puzzles, validating transactions on the blockchain. Miners who successfully solve cryptographic puzzles receive Proof of Work based cryptocurrencies as a reward.
How Is Cryptocurrency Mined?
To mine cryptocurrency, individuals solve cryptographic puzzles, thereby securing a blockchain network. In Proof of Work (PoW) systems, this requires powerful computing resources, whereas Proof of Stake (PoS) systems involve validators staking cryptocurrency to earn the right to validate transactions and create new blocks.
GoMining: A New Way to Mine Bitcoin
An Analysis Into GoMining’s New NFT, and their Tokenomics
Bitcoin mining company, GoMining, has changed the way we think about bitcoin mining with their GoMining NFTs, giving holders a share of ownership in their mining operations. With over 2,000 BTC paid out over the last two years, GoMining is proving their thesis that bitcoin mining can be easy and accessible for everyone.
With brand ambassadors like Khabib Nurmagomedov and the project’s avid participation in the Bitcoin Mining Council, GoMining understands the importance of the cryptocurrency industry and the role of their bitcoin mining operations within it.
GoMining recently launched a major update to their tokenomics for the GoMining token. The new system has several implications for token and GoMining NFT holders. So let’s dive into what exactly GoMining offers crypto users and their tokenomics system, breaking down the token’s life cycle and distribution.
What is GoMining?
In its truest essence, GoMining is a bitcoin mining company that provides investment vehicles and settlement layers for crypto investors to invest in bitcoin mining and earn returns in BTC without the hassle of operating their own mining equipment. This fundamental revenue stream is the foundation for GoMining’s ecosystem.
The project is able to offer “virtual” bitcoin mining through their GoMining NFT, which is a digital asset that represents a share of hashrate, otherwise understood as computing power. The more computing power you own of GoMining’s servers, the higher the share of mined BTC you get.
A sample of GoMining NFTs at their NFT Marketplace.
GoMining considers the GoMining NFT a new class of digital asset: Liquid Bitcoin Hashrate.
Liquid Bitcoin Hashrate Explained
Liquid Bitcoin Hashrate (LBH) is a new token concept pioneered by GoMining, that is designed to be a way that mining companies can tokenize bitcoin mining computing power.
LBH tokens are similar to staked Ethereum (stETH) in that they can be traded, used as collateral, and used in DeFi protocols. However, there is one key difference. Whereas stETH is a representation of staked Ethereum in a larger pool, LBH tokens represent a real-world asset, namely hashrate, and represent a tangible value of computing power.
The introduction of LBH tokens could have a number of benefits for the DeFi ecosystem. First, it has the potential to create access to bitcoin mining for a wider range of users. Second, like stETH did for ETH, LBH could help to increase the liquidity of Bitcoin, as LBH tokens can be traded on decentralized exchanges. Third, it could help to reduce the energy consumption of bitcoin mining, as users can choose to mine with more efficient mining companies.
Overall, Liquid Bitcoin Hashrate is a new and innovative concept that has the potential to make bitcoin mining more accessible, liquid, and efficient. It’s because of the GoMining NFT that we have a true proof-of-concept for LBH.
The GoMining NFT
GoMining NFTs are digital assets that represent ownership of a part of GoMining’s operation. Specifically, each NFT represents ownership of real-life hashrate, otherwise understood as the computing power for bitcoin mining.
Each NFT has two fundamental traits: their hash power and their electrical efficiency. The more hash power, the more Bitcoin earned. The more electrical efficiency, the cheaper the mining fees are.
Hash power is measured in terahashes per second (TH/s), and electrical efficiency is measured in watts per terahash.
GoMining NFTs earn BTC every day depending on the total Bitcoin mined by GoMining, the hashrate of the NFT, and the mining fees incurred.
Breaking Down the GoMining Token Life Cycle
GoMining’s token update introduces new fundamentals that work to simultaneously increase the token demand, and decrease the token supply over time.
It’s a lot to understand at once, so let’s break it down part by part.
Bitcoin: Where It All Begins
Let’s start with the most fundamental part of the project’s business model — the bitcoin mining process. Basically, the Service Providers send mined BTC to GoMining NFT holders.
Service Providers are simply the miners, the people that go to work at GoMining’s data centers, where they monitor and maintain the bitcoin mining operation.
When GoMining NFT owners receive their distributed BTC, they incur electricity and maintenance fees, just like any mining equipment might. However there are a few differences between GoMining NFT holders and someone with their own mining equipment:
- GoMining NFT holders don’t actually maintain any mining equipment;
- The project’s economies of scale make for cheaper electricity rates;
- The company lets users pay for fees with their earned BTC;
- GoMining lets users get a 10% discount on fees if they pay with GoMining token.
Breaking Down GoMining’s Service Provider Fees
GoMining has been able to lower the cost of electricity across their operations, allowing the servers to obtain more hash power for less. As it currently stands, GoMining has been able to lower their costs to .03 per kWh, which is cheaper than electricity rates in the United States, currently averaging at .13/kWh.
What GoMining does to maintain sustainable growth is that they then sell the electrical costs at a premium to GoMining NFT owners at .05 per kWh. This way, Service Providers can earn on the usage of their electricity.
Enter the GoMining Token
GoMining gives their NFT holders the opportunity to discount 10% of their fees by paying with the GoMining token, effectively creating an electricity rate of .045 per kWh.
By utilizing GoMining token as a form of payment for fees, GoMining effectively designed a new demand flow for GoMining token purchases within their ecosystem. This is what is considered a form of demand-side tokenomics, which focuses on generating buying pressure through capturing value. GoMining token is capturing the cost of electricity for the GoMining operation.
Enter the Burn & Mint Cycle
Here’s where things get interesting. All tokens that are used to pay fees go through a “Burn and Mint” process. The key formula to determine how much GoMining token to burn is m*X, where m<1. X represents the total amount of tokens paid for fees, and m represents the “mint coefficient,” which determines the portion of X that is reintroduced into circulation.
Simply put, GoMining’s Burn & Mint is a key mechanism to tighten GoMining token supply over time. By burning more tokens than what is reintroduced back into GoMining’s circulation, the company designed a mechanism that will inevitably decrease token circulating supply.
Combine that with the GoMining token’s demand-side discount fee model, and we can start to envision the spinning flywheel that is GoMining’s tokenomics.
Using the m*X function, we can explore what a decreased GOMINING supply might look like over a series of epochs, each epoch per every 10 million GOMINING burned. The exact value of m is determined through governance, but currently, it stands at m = 0.8.
Where Does the New GOMINING Go?
The newly minted GoMining tokens are dispersed across the Service Providers, the veGOMINING contract, GoMining’s NFT Marketing, and the GoMining team.
The GoMining token distribution is broken down as such:
- Service Providers — 65%: Payment for electricity fees and maintenance costs to run the mining servers;
- veGOMINING Contract — 20%: Weekly rewards for veGOMINING vote holders;
- NFT Marketing — 10%: Coverage for maintenance discounts, bonuses, referral program, and round multipliers. If any GoMining token remains, voters can distribute extra token to NFT holders;
- GoMining Team — 5%: Royalties to the GoMining team for development.
GoMining Service Provider Fee Breakdown
Service Providers continue to afford the electrical costs because of two reasons. The first reason is that, according to GoMining’s contract data on NFT holders’ payments, around 30% of fees are paid directly in BTC. The other 70% are NFT holders that get the 10% discount on fees by paying with GoMining token. Remember, Service Providers are making between .015–.02 per kWh they spend thanks to the premium GoMining charges, allowing them to stay afloat, even if the circulation of the token is decreasing each epoch.
veGOMINING Contract Breakdown
GoMining will distribute 20% of newly minted tokens to its stakers. Like other ve token models, the staking and locking mechanism will tighten the supply of tokens available by encouraging token holders to lock their tokens for more tokens promised later.
NFT Marketing Breakdown
Some 10% of GoMining tokens is used for NFT promotions, specifically to cover for maintenance discounts, bonuses, earnings from referral programs, and round multipliers. Any extra tokens that remain are then offered to GoMining NFT holders.
veGOMINING token holders determine the distribution of these GoMining rewards through their governance process.
GoMining’s Governance Process
Users that lock their GoMining tokens in the vote-escrow contract will receive voting power to engage in governance processes regarding GoMining rewards distribution, and staking yield in the form of GoMining emissions. It is only through locking tokens that users can access voting power or staking emissions.
GoMining token stakers have a choice between locking their tokens from 7 days to 4 years, with voting power and staking yield increasing linearly as the lock time increases.
Lock a token for four years, and the ratio for veGOMINING/GoMining is 1/1. Lock a token for one year, and the ratio for veGOMINING/GoMining is 1/4.
- 1 GoMining for four years = 1 veGOMINING
- 1 GoMining for one year = 0.25 veGOMINING
Conclusion
Overall, GoMining is a leading player in the bitcoin mining industry. Their innovative approach to bitcoin mining and their unique tokenomics have the potential to change the way we mine Bitcoin for the better.
GoMining’s tokenomics are designed to increase the demand for GoMining tokens and decrease the supply over time. Through demand-side discount fees, to the Burn and Mint cycle, to veGOMINING governance, GoMining is building the best ecosystem for easy and accessible bitcoin mining for everyone.
Check the project’s website.
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Former Cohasset High School Employee Accused of Stealing Thousands in Electricity to Mine Bitcoin in School Campus Crawlspace
A former school assistant facilities director in Cohasset, Massachusetts, has been accused of operating a cryptocurrency mining operation inside a crawlspace at Cohasset High School. The Cohasset Police Department alleges that Nadeam Nahas stole nearly ,000 in electricity to power the crypto mining scheme.
Former Cohasset School Employee Faces Charges for Electricity Theft in School Crawlspace Crypto Mine
A report published by Boston’s WCVB network alleges that Nadeam Nahas, a former school employee in Cohasset, Massachusetts, stole electricity from the district to mine cryptocurrency. Nahas is accused of setting up the operation at Cohasset High School’s crawlspace, where multiple computers, ventilation devices, and connected wiring were found.
Photographs taken by the Cohasset Police Department show that the mining devices appear to be application-specific integrated circuit (ASIC) mining rigs, possibly used for mining bitcoin. Police accuse Nahas of secretly mining cryptocurrency for eight months on the school’s campus, and the town’s IT director discovered the operation was a crypto mine.
Investigators, Cohasset police, and members of the Department of Homeland Security were involved in the case and removed the miners from the high school’s crawlspace. The investigation lasted three months, and investigators estimate that approximately ,492 in electricity was stolen.
Nahas is one of many individuals accused of stealing electricity to power cryptocurrency mining operations over the years. For example, in 2021, Malaysia seized 1,720 bitcoin mining machines during an electricity theft crackdown.
Law enforcement officials in Malaysia revealed last year that they had arrested more than 600 people for stealing electricity to mine cryptocurrency in the previous two years. In 2020, a kennel owner in China was arrested for stealing power to run a bitcoin mining farm.
In Rotterdam, Netherlands, two brothers were arrested in 2016 for stealing electricity to mine bitcoin and grow cannabis. WCVB reporter William Bennett reports that Nahas is facing charges of school vandalism and fraudulent use of electrical resources.
Nahas is scheduled to appear in Quincy District Court for arraignment on Feb. 23, 2023. According to Bennett, when reached by phone, the accused former Cohasset school employee declined to comment on the matter.
What do you think about the former school employee accused of stealing electricity to mine cryptocurrency in the Cohasset High School crawlspace? Share your thoughts on this subject in the comments section below.
No GPU Mining After the Ethereum Merge? Fork Token or ETC to Mine?
According to Watcher Guru, we are only 12,554 away from the Ethereum Merge, which is expected to happen at 1:09 on September 15 (CST). By then, Ethereum will have transitioned to PoS, a major blow to PoW miners in the network. The Merge will force PoW miners that operate the billion mining business to find alternatives.
Source: https://watcher.guru/ethmerge
Recent data shows that Ethereum miners are fleeing from the network. Right now, the average computing power of the whole Ethereum network stands at 854 TH/s. Trending downwards during the past week, the figure has dropped by about 19% from the peak in May. Ethereum’s massive PoW hashrate is of great significance to the entire crypto mining industry, and the ETH hashrate will shift to other PoW coins once Ethereum shifts to PoS, which may reshape the whole mining sector.
Facing the impending transformation of the mining sector, Ethereum miners might exclude themselves from the shift to PoS by the Ethereum community to protect their own interests. From this perspective, PoW miners on Ethereum might root for a hard fork to preserve the existing PoW chain and generate a new coin. However, such a fork coin can be problematic in terms of risks and security. If Ethereum is forked, projects within today’s largest crypto ecosystem will have to make a choice. Meanwhile, multiple mainstream projects, covering the two stablecoin issuers Tether (USDT) and Circle (USDC), the oracle ChainLink, and the on-chain lending protocol Aave, have stated their support for the PoS chain. Without support from popular projects, the PoW chain will be worthless.
Of course, some miners might choose to accept the reality and switch to ETC. The DAO hack split the Ethereum community into the ETH camp and the ETC camp. The two now differ in terms of algorithm, and ETH mining machines might need to go through firmware updates to become compatible with ETCHASH, the ETC mining algorithm. Despite that, there is no technical barrier between ETH and ETC, and it is cheap to switch from one to the other. As such, it is foreseeable that the ETC hashrate will soar after the Merge.
In response to the current boom of ETC mining, many pools, including ViaBTC, have been offering mining benefits. Back in early September, ViaBTC Pool announced that it will terminate the pool’s PoW mining service and the revenue calculation of ETH when the TTD reaches a set threshold. The pool said that asset management functions such as ETH deposits & withdrawals and conversion, as well as ETH financial services that include hedging and loan, will remain available. It also recommended the ETC pool to miners who plan to continue with their PoW mining operations.
To help miners switch to ETC mining, ViaBTC has partnered up with Bitdeer, a top mining service provider, and offered a major benefit: a free trial of the MiningOS firmware. All ViaBTC users can benefit from the six-month free trial of MiningOS, which will help miners minimize costs and maximize returns.
Featuring simplicity, enhanced security, and high yields, MiningOS is an innovative firmware for GPU mining developed by the Bitdeer Group. The product is simple in that it allows miners to deploy their mining operation with one flash drive for downloading the image file, without having to go through the complicated code burning process. Backed by a top mining brand, MiningOS supports SSL connection and emphasizes security and privacy protection. Having been tested on a large number of GPU mining machines, MiningOS ranked second in terms of average revenue, and the figure is more than 2% higher than that of the second-place winner. Over time, the seemingly small difference will be translated into a substantial increase in revenue.
Join the event at https://minerplus.bitdeer.com/miningos
Try out MiningOs for free:
- Click on the link or scan the QR code in the above picture to open the event page;
- Register and log in to your Bitdeer account;
- Install and deploy the MiningOS firmware;
- Contact customer service and apply for ViaBTC-exclusive benefits;
- Select ViaBTC Pool in the mining configuration;
- Enjoy the superior mining experience brought by MiningOS-enabled smart mining and hashrate boost.
CPUs covered
GTX 3070, GTX 3080, and GTX 1660s
Target crypto
ETC
How to install MiningOS:
You can click on the link below for the specific installation instructions or get help from customer service on the Bitdeer website:
https://bdminerplus.zendesk.com/hc/en-us/articles/9876983152921-MiningOS-Installation-Tutorial
About Bitdeer
Bitdeer Group is the world’s leading provider of digital asset mining services. It was founded by Jihan Wu, a renowned pioneer in the cryptocurrency industry, along with Sequoia Capital, IDG and other well-known blockchain investment institutions. The group consists of two service platforms, “BITDEER” and “MinerPlus”, which provide a full range of mining services that include hashrate sharing and smart mining solutions.
About ViaBTC
ViaBTC, founded in May 2016, has provided professional, efficient, safe and stable cryptocurrency mining services for over one million users in 130+ countries/regions around the world, with a cumulative mining output value of tens of billions of dollars. As a world-leading, all-inclusive mining pool, it provides mining services for more than ten mainstream cryptocurrencies including BTC, LTC, ETC, etc. Backed by the one-stop, all-inclusive services spanning the mining pool, the exchange, and the wallet, ViaBTC is committed to offering global users more abundant supporting tools, stabler and more efficient mining services, and better product experiences.
How To Easily Mine Cryptocurrency for Beginners
You may have heard that it is possible to mine cryptocurrencies. Mining is a process of offering resources to a cryptocurrency network in exchange for a reward. Each network requires different types of resources and can offer different rewards based on network rules. For example, Bitcoin and Ethereum networks use computational resources from miners. This effort requires very powerful energy intensive graphic processors (GPU) to compete for recurring rewards. Other mining projects such as PKT Cash can be mined using bandwidth and a computer processor (CPU), such as a computer, server or mobile phone. While mining requires some technological understanding, it is not as complex as it may seem. Here are the steps to mine cryptocurrency so even as a beginner, you can quickly get started and begin earning.
Invest in a Cryptocurrency Mining Setup
In order to competitively mine cryptocurrency, you will need a powerful computer. Different cryptocurrencies require different equipment to be successful. In general, the more powerful the equipment, the higher the yields. Therefore, the first step is to invest into the best valued equipment for competitive mining.
Bitcoin and Ethereum require powerful GPU equipment to be profitable. There are a lot of resources available to determine the best equipment for mining Bitcoin and Ethereum, such as hardware providers like Bitmain and Canaan.
If you are operating powerful GPU or CPU mining equipment, it is important to invest in heat and noise control equipment. Powerful mining machines generate a lot of heat. Proper ventilation and efficient fans are crucial for keeping the hardware cooled and avoiding overheating or wasted energy costs. Soundproofing equipment can also help reduce fan noise.
When mining bandwidth, purchasing a PKT Cube is an easy option instead of building and managing computer hardware. This plug-and-play device makes it easy to monetize your unused internet bandwidth and earn PKT every 60 seconds. The PKT Cube is whisper quiet and comes with turnkey, pre-installed software called PkteerOS that simplifies the process.
Installing Your Mining Software
The next step is installing an operating system and crypto mining software. The specific software required depends on the particular cryptocurrency you want to mine. For example, when mining Bitcoin or Ethereum, there are several free and paid options available, including CGMiner, BFGMiner, MultiMiner and Awesome Miner. Additionally, apps like BetterHash and CudoMiner can make the process even easier.
When mining PKT, the PacketCrypt mining software is free. Simply follow the instructions on the PKT website to install the software on your CPU device.
An alternative option to earn cryptocurrency is to sell idle resources by cloud mining. With cloud mining, miners borrow mining equipment from platforms that offer the service, such as Genesis Mining. Therefore, the miners do not have to buy expensive mining equipment or worry about maintenance and software installation.
Installing a Cryptocurrency Wallet
Miners need a cryptocurrency wallet to receive mining rewards. A wallet can either be a physical device, such as a hardware wallet, or a software installed wallet. When choosing a wallet, it is important to ensure the wallet is compatible with the cryptocurrency you are mining. Some wallets are specifically designed to store certain cryptocurrencies and may not be compatible with other coins.
When installing a wallet, it is crucial to save your private key. A private key is a secret passphrase that unlocks your wallet. Anyone who gets access to your private key will have access to your cryptocurrency, so it is important to keep this in a safe place that will also be accessible when you need it, such as in a safe or other private location.
PKT requires a specific wallet for mining bandwidth. The PKT wallet can be found here; however, the PKT Electrum wallet cannot be used for mining.
How to Choose a Mining Pool and Start Mining
Most cryptocurrencies can either be mined solo or in a mining pool. For beginners, choosing a mining pool is recommended. A good mining pool should have a strong track record and reputation. If you are mining Bitcoin or Ethereum, joining a good pool will give you a competitive advantage and is crucial if you want consistent payouts.
If you are mining PKT, it is important to choose your mining pool configuration based on your upload bandwidth speed. If you have a lot of bandwidth, you can choose to multi-pool mine by connecting to numerous pools. You can test different PKT mining pool configurations here.
Although not recommended for beginners, one can also opt for solo mining. Solo mining is done independently so you do not have to share any profits with other miners. Solo mining is possible with Bitcoin, Ethereum and PKT; however, this type of configuration requires significant technological experience and is a much larger financial investment.
Keep Track of How Much You Mine
Bitcoin and Ethereum miners need to keep track of their yields to know whether their pool is profitable and their strategy is working. Mining pools use different interfaces, so there isn’t one universal way of keeping track of what you mine. However, with most Bitcoin and Ethereum mining pools you only need to go to the website’s home page and enter your public wallet address to get all the information you need. Similarly, with PKT, you can enter your wallet address into the PKT World explorer to view your daily earnings.
Some pools have mechanisms in place to send what you mine to your wallet address once it reaches a specific balance (for example, 0.01 ETH). For PKT, you will get paid every 60 seconds regardless of what you earn in that time period.
Additionally, some mining pools and crypto mining websites have calculators that can be used to get rough estimates on long-term profitability. Here is an example of a Bitcoin profitability calculator:
Is Crypto Mining Worth It?
Mining cryptocurrency has two distinct purposes: supporting the network and generating income. In order to mine, there is often upfront and ongoing overhead cost that the miner must incur, including energy, software and hardware costs. Also, the rewards earned by the miner may not always be worth more than the overhead in a given period. This may mean that you are mining at a short-term loss.
There is also the possibility that the cost to mine is less than the current market value of the cryptocurrency. This means that you are mining at a profit because the digital asset was accumulated at a discount to its current trading price. This discount-to-market-value ratio may also be calculated in the future, so what was a loss at one time, can reach profit in the future. For example, a Bitcoin miner in 2010 may not have been profitable because of the low value of the coin. But in 2022, those same coins are worth far in excess of the original mining costs. As a result, the Bitcoin miner that was mining at a loss in 2010, most likely has generated substantial profits as of 2022.
Since it is impossible to determine the future value of a cryptocurrency, it is recommended that miners also consider the value of supporting the networks they mine. If a miner believes in the value of supporting the network today, then the short-term profitability is of less importance. However, you must also avoid investing too much into crypto-mining before understanding the risks associated with mining. It is recommended to research the volatility of cryptocurrency markets and have a clear understanding of your pathway to potential profitability.
Hackers Are Now Using Compromised Cloud Accounts To Mine Crypto
Attackers are exploiting poorly configured cloud accounts to mine crypto, Google warned users in a recent report.
Cryptocurrency mining is a computationally intensive activity. And Google Cloud customers can access it at a cost. However, miners are now hacking Google Cloud accounts for mining purposes.
In the report titled “Threat Horizons,” Google’s cybersecurity team assessed various threats to Cloud users, providing details of the breaches.
Related Reading | Data Shows Crypto Hacks And Fraud In 2021 Are On Track For A New Record
The report also provided cybersecurity threat intelligence to cloud users. The aim is to enable them “better configure their environments and defenses in manners most specific to their needs.”
Crypto Miners Hacking Google Accounts
In the report, the cybersecurity team analyzed 50 recently compromised Google Cloud accounts. And out of those, 86% were related to crypto mining. “Malicious actors were observed performing cryptocurrency mining within compromised Cloud instances,” Google wrote.
Related Reading | Ethereum Miner Revenue Outpaces Bitcoin In 2021
The report also stated that in the majority of these incidents, the hackers downloaded crypto mining software to the compromised accounts within 22 seconds. The attacks were scripted, and it would have been impossible to manually stop them. Additionally, in 10% of these incidents, the hackers scanned other publicly available resources on the Internet to identify vulnerable systems. While in 8% of the instances, they attacked other targets.
However, as reported by the cybersecurity team, the crypto mining hacks were not the only attacks.
“The cloud threat landscape in 2021 was more complex than just rogue cryptocurrency miners, of course,” wrote Bob Mechler, Google Cloud Director of the office of the Chief Information Security Officer, and Seth Rosenblatt, Google Cloud Security Editor, in a blog post.
Other Threats To Google Cloud Users
Another threat the team identified was a phishing attack by the Russian group called APT28, or Fancy Bear. The attackers targeted 12,000 Gmail accounts in a mass phishing attempt. They attempted to trick users into handing over their login details. Google, however, said it had blocked all the phishing emails, and no user was compromised.
The report also pointed out an attack by a North Korean government-backed group. This hacker group posed as Samsung recruiters, sending fake job opportunities to employees at South Korean information security companies. They attached a malicious link to malware stored in Google Drive. Google said it also blocked it.
Another threat to cloud users is ransomware attacks, whereby hackers encrypt users’ data until they pay. In the report, Google mentions the formidable Black Matter ransomware group. And although the group announced that it was shutting down earlier this month, Google is still cautious. “Google has received reports that the Black Matter ransomware group has announced it will shut down operations given outside pressure. Until this is confirmed, Black Matter still poses a risk.”
Total crypto market at .4 Trillion | Source: Crypto Total Market Cap from TradingView.com
Google attributes some of these attacks to users’ poor security practices. And also vulnerabilities in third-party software that the users install.
The report also recommends a few ways to prevent these attacks. One of which is enabling two-factor authentication.
Featured image by Dreamstime, Chart from TradingView.com
NewsBTC
Data Shows Nearly 90% of Bitcoin Has Been Mined, Here’s How Long It Will Take To Mine The Rest
Bitcoin mining is still one of the hotly debated parts of the blockchain. Miners, no doubt make a good amount for blocks mined given the current price of BTC. But mining difficulty has also gone up as more BTC are mined.
In its decade-long history, over 18.6 million of Bitcoin’s 21 million total supply has been mined. This constitutes almost 90% of all BTC’s supply. This leaves a little over 10% of BTC left to be mined. Currently, there are about 2.250 million coins left to be mined.
Related Reading | Market Analyst Sees Bitcoin Peaking At 0,000 By Year-End
At the current rate, it is estimated that the last bitcoin will be mined about 120 years from now. This is due to halving events that will occur every four years, reducing the supply of BTC going into circulation every four years.
Mining Bitcoin In 2009 Versus Mining In 2021
The cryptocurrency which first came out in 2009 had rewarded miners 50 bitcoins for each block that they mined. This was back when a user could mine bitcoin using an old laptop with a crappy graphics card. At this point, bitcoin was worth next to nothing. So a lot of miners either forgot their coins or sold them for very cheap. Bitcoin’s price evolution through this point is an interesting time.
Related Reading | Crypto Has Arrived In Hollywood And The Stars Are Loving It!
In 2021, three halving events since the launch of the digital currency has seen reward for block mined reduce drastically. The first halving occurred in 2012. At this point, the reward for a block was 25, reducing it by half. The next halving occurred in 2016, which reduced the reward to 12.5. The most recent halving happened in 2020, which reduced the number of bitcoins received per mined block to 6.25.
The reward will continue to halve every four years until all 21 million BTC are mined. Every halving will reduce the rewards for mined blocks by half every time. Making the rewards for mining blocks smaller, while simultaneously increasing the mining difficulty as miners clamor to get the rewards for mined blocks.
BTC Growth Over The Years
The pioneer cryptocurrency didn’t draw too much attention until the Silk Road bust happened. Before the Silk Road was launched, BTC was only used by people who were in it for the technology. The returns were not really significant at this point. These of BTC on Silk Road as a way to purchase literally anything, from drugs to weapons, is what really made law enforcement turn its focus on the coin.
BTC started to see significant growth in 2017 | Source: BTCUSD on TradingView.com
BTC’s price remained mostly flat around this period, despite its increased popularity, thanks to the Silk Road bust. The most notable bull run happened in 2017-2018. This was when a lot of investors had heard about bitcoin. The bull market brought BTC to the forefront as a strong asset to contend with.
Related Reading | Bitcoin At 0,000, Ethereum At ,000 Is Path Of Least Resistance, Says Bloomberg Crypto Analyst
In 2021, it is estimated that about 10% of the current world population are invested in either BTC or altcoins. Current numbers are put between an estimated 51 and 52.4 million crypto investors in the world. Compared to an estimated 2.9 to 5.8 million in 2017, this is tremendous growth.
Featured image from OptinMonster, chart from TradingView.com
NewsBTC
3,000+ PlayStation Consoles Discovered In Raid, Modified To Mine Crypto
We’ve seen esports and gaming get integrated in the crypto landscape left and right lately – but not quite in ways like this. Thousands of PlayStation consoles were last week modified to mine crypto.
The Details Of The Operation
The Ukrainian Security Service (SBU) raided the operation last week for allegedly stealing electricity; the SBU is the country’s main government security agency and law-enforcement authority. The SBU seized roughly 5,000 total devices – with around 3,800 seeming to be PlayStation 4s. The authorities also seized over 500 graphics cards, processors, phones, flash drives, and documents belonging to the operation. The press release from the seizure described the operation as the “largest underground crypto farm” that the SBU has exposed and documented.
The operation was mining crypto in an old regional electricity provider warehouse in Vinnytsia, just over 150 miles outside of the Ukrainian capital of Kyiv. Authorities have been in contact with JSC Vinnytsiaoblenerho, the electricity provider that previously occupied the building.
The miners are accused of using electricity meters that masked actual usage in activities the SBU claims can also lead to power surges, as well as leaving others without electricity. The monthly electricity theft from the miners was valued by the SBU at between 6,000 and 0,000 USD.
A photo taken from the Ukrainian authorities shows thousands of PlayStation 4s set up in an unorthodox mining operation. | Source: Secret Service Of Ukraine: Press Release
Related Reading | Authorities Arrest Perpetrators For Illicit Cryptocurrency Transactions
Is The Juice Worth The Squeeze?
Your traditional crypto mining operation certainly does not look like this one – but that doesn’t mean that this couldn’t have been still a financially beneficial endeavor for the individuals running this operation. Assuming what seems to be no cost of electricity whatsoever for these miners, the operation could likely have been set up to mine more GPU-friendly cryptos that utilize less processing power. Photos released from SBU, such as the one pictured above, show wall-to-wall racks of PlayStations.
Bitcoin, and crypto broadly has been a point of contention throughout Ukraine. Earlier in the year, the country’s Ministry of Energy was reported to be considering a bitcoin mining center to leverage the nation’s excess nuclear power. Furthermore, the National Bank of Ukraine has urged government officials to expedite crypto legislation to address it’s legality. However, talks around both issues in recent weeks seem to have stalled.
Additionally, illegal crypto mining operations run rampant in Ukraine, according to interviews around this particular story in the Kyiv Post. However, crypto mining and trading is not illegal in the country – but Ukrainians are not able to register as crypto entrepreneurs, or declare crypto exchanges at present.
Ethereum is generally seen as one of the more processor-friendly coins to mine, relative to bitcoin. | Source: ETH-USD on TradingView.com
Related Reading | Poland Regulators Spread Warning Against Cryptocurrency Exchange Binance
Featured image from Pixabay, Charts from TradingView.com
Square and Blockstream To Build U.S. Based Bitcoin Mine With Renewable Energy
Bitcoin mining is on the move. Around the world, more companies and initiatives are being brought to life. Blockstream and Square have announced a partnership to build one in the U.S. based on renewable energy.
The Bitcoin infrastructure startup, led by Adam Back, and the financial services company, led by Jack Dorsey, will create an open-source Bitcoin mining facility driven by solar energy. The BTC mine will be constructed on a Blockstream mining site located in the United States.
Their objective is to share details on the project’s economics and their experience in the development of the facility. In addition, they plan to raise awareness and demonstrate BTC mining and renewable energy can be a catalyzer for a transition towards clean energy.
Together with @Square, we’re building an open-source fully solar-powered #Bitcoin mining facility at one of our US #BlockstreamMining locations to demonstrate how #BTC mining and renewables can drive the clean energy transition. ☀️⛏️ https://t.co/0D4yKOe82M pic.twitter.com/HdVhe031GY
— Blockstream (@Blockstream) June 5, 2021
Square will invest million and Blockstream will provide the infrastructure and expertise to help build the project. Ultimately, it will be a Proof-of-Concept used to demonstrate that green Bitcoin mining at scale it’s possible. Thus, the need for transparency in every detail. Chris Cook, CIO and head of Mining at Blockstream said:
Many mining operations throughout the world, including our own, already rely on renewable energy because it is the most cost-effective power available. Together with Square, we hope that the open and transparent nature of the project will become a model that other businesses can learn from.
Bitcoin, A Tool To Build A Sustainable Future
Once built, the BTC mining facility will allow other participants to expand the operations. It will be designed to be scalable and with the capacity to add more support for future growth.
Neil Jorgensen, Global ESG Lead at Square, revealed to be excited about the partnership and along with Blockstream will contribute with a working model to prove their thesis. Jorgensen added:
The project will serve as an ongoing, transparent case study that will allow us to all learn together the specific unit economics of clean energy Bitcoin mining. We can’t wait to start sharing our results with the community.
Blockstream will provide regular reports on the project and will have a publicly available dashboard to display real-time metrics on the BTC mine’s performance. This will include its power output and the amount of BTC mined. The dashboard will be based on a technology called Blockstream Mining Note (BMN).
Square has made several efforts to support the growth of Bitcoin and its ecosystem. The Dorsey-led company published a Whitepaper with firm Ark Invest on a system based on renewable power to drive batteries and use BTC mining to absorb the excess energy.
During a discussion with Alex Gladstein, Chief Strategy Officer at the Human Rights Foundation, in the Bitcoin 2021 Conference, Dorsey said:
Ultimately miners have to make a profit and getting cheap renewable energy maximizes their potential for profit (…). Bitcoin over time and today does incentivized more renewable energy and awareness about how they are getting that power. It gives people freedom to convert wasted power into something that creates value for billions of people around the world.
BTC trades at ,132 with a persistent sideways trend after an over 50% correction in the past week. In the 7-day and 30-day charts, BTC has a 1.2% profit and a 37.1% loss, respectively.
![Bitcoin BTC BTCUSD](https://www.newsbtc.com/wp-content/uploads/2021/06/Bitcoin-BTC-BTCUSD-3-860x512.png)