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Crypto Mining News

For every Genesis, there is an End.

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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

Crypto Mining News

Is CCRB’s New App The Latest Big Shot In E-Tail And Mobile Mining?

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CCRB to launch a dedicated consumer-oriented app allowing users to Shop, Trade, and Earn. While companies like Coinbase with their e Gift cards are just about to knock the doors of this multi-billion dollar market, CCRB has already unlocked a host of opportunities for thousands of consumers from all across the world – including mining through their mobile device. 

Cryptocarbon, a UK based, consumer-driven Blockchain venture is proud to announce the launch of its power-packed CCRB App. The new Crypto Carbon App is particularly designed for crypto lovers all across the globe – it allows users to shop with 100% payments made in cryptocurrency – there is no getting a new card or paying in fiat. The new app is loaded with features as it also allows users to swap between 6 major cryptocurrencies and allows for crypto mining right from their mobile devices.

The cryptocarbon platform is exclusive and unique as it genuinely allows its users to make valid purchases from over 35,000 partner outlets spread across 200 countries using their crypto assets. The exciting new app is a promising development. Big names like Coinbase are coming with typical eGift cards to allow crypto users to directly use their crypto assets to purchase limited products at select retail stores. The team is already working on an advanced version of the app – CCRBXPRO. The pro version will…

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Crypto Mining News

IOTW Leverages IoT, New Blockchain Algorithm to Help Miners Generate Coins with Electrical Devices

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The Internet of Things (IoT) is one of the most promising technologies, along with the distributed ledger technology (DLT) – also called blockchain, artificial intelligence, and a few others. ANAPP Blockchain Technologies Limited, a blockchain-oriented startup, plans to merge IoT with blockchain for an innovative infrastructure that would allow users to mine digital currencies with the help of any electronic device and home appliance that can act as an IoT device.

IOTW, as the new project is called, will use blockchain to provide a better alternative to the popular Proof of Work (PoW) and Proof of Stake (PoS) consensus algorithms. IOTW proposes Proof of Assignment (PoA) – a completely new approach that solves some of the main problems inherent in the traditional algorithms. The ecosystem is fueled by IOTW coins, which allow high-speed micro-transactions.

Some may find IOTW quite similar with IOTA, a popular project that combines a distributed ledger system with the IoT concept. However, IOTA doesn’t use an actual blockchain system but an architecture called Tangle, and more importantly, it doesn’t perform as well as IOTW.

Leveraging IoT to Beat Proof of Work

Bitcoin is by far the most popular and oldest cryptocurrency, and today most of the miners would target it given its high price. However, the competition became fierce and retail miners don’t find it profitable…

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Digibyte’s upcoming hard fork this summer and how your GPU mining rig will benefit

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About two months ago, the Monero community was vexed in a war of words with Bitmain over the release of the Cryptonight –capable Antminer X3. The Antminer X3 had been designed to mine altcoins that use the Cryptonight hashing algorithm with Monero as the main mining target. As usual Bitmain (world’s biggest manufacturer of ASIC mining hardware) happily announced its release. However, in response, the Monero Blockchain was forked to maintain its ASIC resistance rendering all the new Atminer X3 obsolete.

The ongoing mining battles

Basically, there has always been a fight for control in the crypto mining world. Mining equipment manufacturers like Bitmain are currently able to control the crypto landscape as they wish since they equally control who gets what mining equipment, when and at what cost. The general feeling has been that the rich get richer while amassing more control over the Blockchains as eventual centralization of the networks is realized.

Considering the engineering cost of coming up with an ASIC miner, and the fact that ASIC miners are more powerful that GPU and CPU miners (that mostly belong to hobbyist), companies like Bitmain are able to niche down the manufacturing of ASIC miners and even set up their own mining operations with equipment at low production cost. It is this unfair advantage that leads to an uproar whenever a new ASIC mining machine is…

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