Connect with us

Crypto Mining News

For every Genesis, there is an End.

Published

on

As the founder of Elevate Group, which is a managed co-hosting facility for bitcoin mining, I went to great lengths to analyze how both the mining ico’S are structured and how cloud mining operates. So I believe I’m particularly well qualified to write this article, and I hope the reader gains from it.

Yes, this is also a marketing piece about Elevate Group, but there are no gimmicks or ‘specials’ or anything like that, I just point out the relevant truths and ask some pressing questions about the industry as a whole. All my numbers are derived directly from the companies websites, all this information is factual and I encourage you to check them for yourself.

So let’s start with a basic summary of what bitcoin mining is exactly, and if anyone ever tries to complicate this answer, they are speaking nonsense. Bitcoin mining serves two functions, it secures the bitcoin network and verifies transactions. We, miners, are boring data processors. That’s it, that is what we do. In order to make mining profitable, you want to keep your costs low. So if you are a cloud mining company and you’re spending money on advertising, marketing, and nice offices, guess what? That means your mining profits will have to cover those expenses, and when you take a cloud mining company like Genesis, who does a lot of marketing and has a lot of those types of expenses, what do you think happens? Yeah, they need to cover their costs and the way they do that is through the mining profits, their customer’s mining profits. So you buy a mining contract, they buy miners, put them in their facility, mine bitcoin and then what happens? Right, they first pay their employees, pay their marketing, their rent, ok you get the picture. When all those expenses are done, they then sit down with what’s left of YOUR mining profits and say something like ‘how much of what’s left do we give to the customer?’. You would think that after having paid those expenses you’re not gonna have to pay much, wrong.

What you now have to pay is Genesis corporate profits. Does Genesis make a lot of money? Probably yes, and do you know that as a pure mathematical fact, the more money Genesis makes, the less money they have to pay out to buyers of their contracts? That’s just simple math; if they have $100 in profits, and their contract calls to pay out $50 in contracts, then their profit is $50. Now if they pay out $30 in mining contracts, then their profit is $70. So there you go, the more Genesis makes, the less they have to give buyers of their mining contracts. The problem is most people don’t know a lot about mining but they love passive income, and they know Genesis is big, so that gives them comfort. They do what’s comfortable, not knowing that there are much more profitable options out there.

Before we go on, let me give you some more facts. Here is what Genesis mining has posted on their website as their latest ‘special pricing’:

Back in stock (Limited Offer)

Now, if you know a little about mining bitcoin, you know that Bitmain is the largest supplier of the most stable ASIC miner, used to mine bitcoin by almost all of us commercial miners. We sell the Bitmain s9 13.5 TH miner for $1,299 right now. The price range I see for those on the market by resellers is anywhere from $1,150 all the way up to $1,800- and that could be without a power supply and no follow-on services like mining it for you, maintenance, and most important hosting.

So let’s take an average price of $1,500 for a 13.5 TH machine. Again, we can use math to derive the simple fact that The special pricing offered by Genesis of $284 per TH equates to $3,834, so you’re spending that much to get an equivalent of one s9 ASIC miner- which sells for about $1,500. So why are people paying so much more than they have to?

I think it’s for two reasons. Firstly, Genesis was one of the first, if not the first, to offer cloud mining. So they arrived at a time where mining was really young and margins were fat. They could charge what they wanted because the bottom line was that if you wanted to mine and you didn’t have the tools for commercial mining (e.g.facility, engineers, low power costs), then you saw Genesis as the only viable option. That’s not the case anymore, there are companies out there that are able to provide much better options. Before getting into that, there is another problem with cloud mining. The perfect example is what happened with Hashflare in June; suddenly, Hashflare said they would not be distributing mining profits for bitcoin contract holders. The internet was replete with YouTubers angry as heck about their stuck money.

Despite the not so special pricing model, and the fact that cloud mining contracts are not such a good way to go, the cloud miners charge a maintenance fee on top of it. So with Genesis, they charge .14 cents per TH per day (https://www.genesis-mining.com/pricing). That’s a hefty fee; at Elevate Group (elevategroup.io) we provide free maintenance, free hosting, and our power costs are 5.5 cents per KwH. That’s a big saving, and you pay about $96 per TH instead of $284 per TH.

The last thing that doesn’t make sense is that Genesis offers a 5-year contract, this is troubling because everyone in the industry knows that an ASIC miner lasts about 2-3 years, so what are they doing? That’s a question I can’t answer and to be honest, I wouldn’t be surprised if they had a “fine print” section of their contract to explain how the stars have to be in order for them to honor that.

Moving on to the ICO mining sector, I point to a simple feature that should make anyone looking at mining ico’s think twice. Remember, it’s all about keeping your costs low, and if you’re doing an ICO you also are trying to raise as much capital as you can. That means marketing expenses, that means management overhead, facilities, and a bunch more. So where does that money come from? You guessed it. Most often, if not always, investors are paying for all these costs in an ICO, and to make matters worse, nobody is going to really check a smart contract code to see what they are really spending and where. So in an ICO, it’s not uncommon that you purchase $500 worth of token, and you get $200 worth of mining power. It’s just that simple.

So why did I create Elevate? Because I realized that mining is simple, boring, and the main thing you need is cheap electricity and low costs. In Siberia, where our mining farm is located, power costs are among the cheapest in the world. On top of that, we are located in the same city as Bitmain’s repair facility (https://news.bitcoin.com/bitmain-opens-repair-center-russia/), which means we can offer free maintenance on your miners, and you don’t have to ship your miner to China when it needs repair. This is a feature that is so advantages, very few people can compete. We took all these benefits and decided not to do an ICO, and to skip the cloud mining model- a model which I believe is going away. We kept it simple, we kept our costs low, we didn’t spend a bunch of money(your money) on marketing, so that we could offer you the most competitive and profitable mining platform in the world. So how does it work?

Easy, you buy a miner, we place it in our facility, manage it for you, host it, and maintain it. We pay you your profits every month and charge a reasonable equipment management fee of 20% of profits. When you factor in the fact that we are selling the machines at such low prices, and that we don’t charge for maintenance or hosting, and our power costs are lower than most commercial mining farms, what you end up with is a model that pretty much turns the passive income investor into a commercial miner. That is what we do, we have made mining accessible and way more profitable for individuals who can’t otherwise open their own mining farms. For a savvy investor, this is a dream come true, and now that word of mouth is doing the marketing for us, we expect our name to get out there and hopefully show people that there are options out there other than the typical ICO and cloud mining contracts.

In an industry and world that is moving at this pace, innovation and efficiency play a major role in success. We believe by putting the investors needs first, we will succeed in bringing the new era of bitcoin mining to individual investors. Not through an ICO and not through a cloud mining contract, but through good old fashion business sense. What does that mean for us? It means keep your costs low, think of your customers first, and make management available so that your customers know you care. That is what we’ve done. We’ve been organically growing our telegram community, and while it does not have thousands of members, almost everyone knows each other on a first name basis and almost everyone is mine owner. I believe in the blockchain and I believe bitcoin prices will appreciate significantly in the years ahead. Mining is the stable, passive income way of accumulating bitcoin and holding it for the long run.

Genesis means the beginning, and in the beginning, Genesis provided a valuable service. Now is the time for other more efficient platforms to take the stage and deliver the true value investors seek. We are doing just that, and we’re having fun at the same time. Join us in the new era.

Amir Ness

elevategroup.io

Telegram: https://t.me/joinchat/G_33-0m8bs5BGOxkqsHbDQ

Altcoins

XNO Token of Xeno NFT Hub listed on Bithumb Korea Exchange

Published

on

Hong Kong, Hong Kong, 25th January, 2021, // ChainWire //

Xeno Holdings Limited (xno.live ), a blockchain solutions company based in Hong Kong, has announced the listing of its ecosystem utility token XNO on the ‘Bithumb Korea’ cryptocurrency exchange on January 21st 2021.

Xeno NFT Hub (market.xno.live ), developed by Xeno Holdings, enables easy minting of digital items into NFTs while also providing a marketplace where anyone can securely trade NFTs.

The Xeno NFT Hub project team includes former members of the technology project Yosemite X based in San Francisco and professionals such as Gabby Dizon who is a games industry expert and NFT space influencer based in Southeast Asia.

NFT(Non-Fungible Token) technology has recently gained huge focus in the blockchain arena and beyond, making waves in the online gaming sector, the art world, and the digital copyrights industry in recent years. The strongest feature of NFTs is that “NFTs are unique digital assets that cannot be replaced or forged”. Unlike fungible tokens such as Bitcoin or Ether, NFTs are not interchangeable for other tokens of the same type but instead each NFT has a unique value and specific information that cannot be replaced. This fact makes NFTs the perfect solution to record and prove ownership of digital and real-world items like works of art, game items, limited-edition collectibles, and more.

NFTs are already being actively traded in markets globally. For…

Continue Reading

Altcoins

XENO starts VIP NFT trading service and collaborates with contemporary artist Hiro Yamagata

Published

on

Hong Kong, Hong Kong, 24th December, 2020, // ChainWire //

The XENO NFT Hub (https://xno.live) will provide a crypto-powered digital items and collectables trading platform allowing users to create, buy, and sell NFTs. Additionally it will support auction based listings, governance and voting mechanisms, trade history tracking, user rating and other advanced features.

As a first step towards its fully comprehensive service, XENO NFT Hub launched a recent VIP service to select users and early adopters in December 2020 with plans for a full Public Beta to open in June 2021. 

“NFTs are extremely flexible in their usage, from digital event tickets to artwork, and while NFTs have a very wide spectrum of uses and categories XENO will initially focus its partnership efforts and its own item curation on three primary areas: gaming, sports & entertainment, and collectibles.”, said XENO NFT Hub president Anthony Di Franco.

He also added “This does not mean we will prohibit other types of NFTs from our ecosystem However, it simply means that XENO’s efforts as a company will be targeted into these verticals initially as a cohesive business approach.”

Development and Procurement Lead, Gabby Dizon explained, “Despite our initial focus, we found ourselves with a unique opportunity to host some of the works of Mr. Hiro Yamagata. We are collaborating with Japanese artist Hiro Yamagata to enshrine some of his artwork into NFTs.”

Mr. Yamagata has been…

Continue Reading

Altcoins

My Crypto Heroes Announces Issuance of MCH Governance Token

Published

on

Tokyo, Japan, 24th November, 2020, // ChainWire //

My Crypto Heroes is happy to announce the issuance of MCH Coin as an incentive to players in the My Crypto Heroes ecosystem, aiming to allow them to craft a “User-oriented world”. The MCH coin is available on Uniswap with a newly created pool with ETH. 

My Crypto Heroes is a blockchain-based game for PC and Mobile. It allows users to collect historic heroes and raise them for battle in a Crypto World. Officially released on November 30th, 2018, MCH has recorded the most transactions and daily active users than any other blockchain game in the world.

What is MCH Coin?

MCH Coin is being issued as an ERC-20 Standard Governance Token. The issuance began on November 9th, 2020, with 50 million tokens issued.

Of the funds issued, 40% are allocated to a pay for on-going development and as rewards for advisors and early investors. 10% are allocated to marketing and the growth of the ecosystem, and 50% are allocated to the community. The Distribution Ratio of the MCH Coin is subject to change via a governance decision.

The MCH coin will be used as a voting right as part of the ecosystem’s governance, with 1 coin being 1 vote. It will also be used for in-game utilities and payments. Additional information can be found here:

https://medium.com/mycryptoheroes/new-ecosystem-with-mchcoin-en-a6a82494894f

During December 2020 the first governance…

Continue Reading

Press Release