The Resurgence of Small-Scale Crypto MiningJune 22, 2019
The first day of summer came not long ago, but there is no doubt that the crypto winter is over as well. The price of bitcoin is on the rise and has gone over $11,000 for the first time in many months. The single spike trend that was often highlighted as the main proof that this market had its Tulip mania moment is now well and truly broken. In fact, bitcoin bounced to almost quadruple the price of its lowest moment where the price hovered around $3,000.
As many times before the critics have little to say about this development and the crypto enthusiasts are overjoyed with the development. Outside of these entrenched positions, there is a huge number of ordinary people who are again reminded that there’s a market that offers a new and unique financial product that could provide some direct financial benefits.
With that, many are trying to figure out how they can enter the same field and for the first time in a long time, they have the original option. This is the use of small-scale mining rigs and direct production of cryptocurrencies at their home or even some other location. If the trend catches on, it is going to be another additional means of growing and expanding the key element of this crypto ecosystem – adoption.
The Coinmine Concept
Coinmine One represents a stand-alone device for cryptocurrency mining that is aimed at the market for crypto hosts. It now offers the users the option of being able to get pain using bitcoin. This device, which comes as a neatly packed simple white rack, including the other casino, can mine a range of cryptocurrencies. These include zcash, monero, grin and finally the biggest one of the packs so far, ethereum.
This is the selection available at the launch of the device, but their number will grow soon after. All of the cryptocurrencies mentioned here have relatively low difficulty thresholds to allow this average-built mining rig to provide a minimal return. Additionally, the company making them is providing an option of giving its users payouts in bitcoin that would make the device more interesting to new buyers. It will have to provide a good incentive, being that it costs $800 and $700 if the users wish to purchase it with bitcoin. Still, the product is very interesting because it offers a plug and play option for anyone who wants to get their hands on a sufficient mining operation.
This is by no means a small feat in the space that was previously held by very tech-savvy individuals who were able to build mining rigs at home using an IT engineer-level of knowledge and experience. Coinmine offers a system that anyone can use almost immediately both in terms of hardware but also the software that is a part of the setup.
Farbood Nivi, the founder of the company that makes Coinmine said that the setup needed to be expanded beyond a basic mining rig with a nice casing. Instead, they wanted to provide users with the most bitcoin profit at any given moment. They did this by providing their engineers with the task of creating a system that would immediately and automatically mine any of the cryptocurrencies that provide the best payouts when converted in bitcoin.
The system does this also immediately, providing the users with a payout to their bitcoin wallet. Nivi said that this way the users get better payouts than if they simply mined bitcoin directly all of the time. Naturally, the same device will not make anyone a millionaire in a short time, or even a prolonged period. Nivi defines it as more of a testing ground and experimental tool for anyone who is interested in the process of mining. Currently, traditional options are both expensive and very complex with their organizational requirements.
With Coinmine, the same is reduced to a less energy-hungry operation that is furthermore streamlined in the logistics department. Instead of setting up accounts and many other necessary things, the devices come pre-loaded with all of that and even makes mining switches completely autonomous. This raises the potential for the miner to make money while at the same time offers them a chance not to invest too much time in this process. This is also a crucial factor for anyone who wants to try out crypto mining but has a regular day job or other commitments that do not allow them to spend hours each day on this venture.
Using the values of bitcoin and other cryptocurrencies, the rig would be able to generate about $15 to $20 per month. Naturally, this is directly tied into the price range of the same digital currencies, so if the crypto winter prices come back, the rig would generate only about $5 per month. Yet, rigs like this also have another advantage and they provide the users with the chance of entering the Lightning network.
Furthermore, the company is working with services like Cred, Compound Finance, and Blockfi to further stretch the funds a rig like this can earn for its users. In other words, the device is not simply a mining rig that produces a profit by selling its mining results, but one that defines an entire small ecosystem of tech and finance, all available on the user’s smartphone as a compact app.
Power to the People
Coinmine One is not the only device or setup offering this possibility of earning bitcoin and other cryptocurrencies. Like with esports, social media and other digital-first ventures, crypto needs to be able to spread itself into the general population in some shape or form. Over a previous couple of years, the awareness factor did rise significantly thanks to both positive and negative news coverage.
Now, with so many people knowing that cryptocurrencies exist, they offer a means to attain them will immediately help with the adoption. Small-scale crypto mining is without any doubt a great addition to this offer, even though the price tag might seem high. In spite of that, it offers a way into the crypto world and this is a key element for the growth of the entire field.