In April 2024, the fourth Bitcoin halving occurred, marking a pivotal moment for the mining industry, particularly for Bitcoin miners. This event spurred miners to explore additional avenues for optimizing their operations despite diminishing rewards. Individual miners, lacking larger corporations’ vast resources and cutting-edge equipment, felt this impact acutely.
Venturing into the Bitcoin mining arena without sufficient infrastructure and access to cost-effective energy presents a significant hurdle. It necessitates the navigation of various challenges. The substantial expenses associated with infrastructure make establishing a Bitcoin mining operation a financially demanding endeavor. Moreover, the escalating significance of electricity costs restricts the viability of this business model in many regions across the globe.
Given these conditions, numerous market participants grappling with shifting dynamics have contemplated alternative solutions. One such solution worth considering is GoMining. The platform introduces an innovative approach to Bitcoin mining by utilizing NFTs.
The Liquid Bitcoin Hashrate Vision by GoMining
GoMining emerges as a Web3 platform offering a promising solution to the challenges mentioned above. Its innovative approach involves leveraging Non-Fungible Tokens (NFTs) as a bridge between retail miners and the mining power itself. Pioneering the tokenization of hashrate, GoMining aims to lower the barriers to entry that are typical in the mining industry. It will streamline user costs and hashrate management processes. GoMining NFTs are also referred to as digital miners. They represent flexible shares of Bitcoin mining power generated across numerous GoMining data centers globally.
At the heart of GoMining’s solution lies the Liquid Bitcoin Hashrate (LBH) protocol—an innovative solution for tokenizing Bitcoin mining power. This protocol guarantees the ownership of hashrate shares presented as NFTs’ attributes. Thus, it simplifies the purchasing, upgrading, and transfer of Bitcoin mining power, mirroring the management of any other digital asset.
A key distinction lies in the benefits afforded to GoMining NFT holders. Beyond NFTs’ aesthetic appeal and collectible nature, holders receive rewards proportional to the amount of hashrate they possess. Furthermore, the LBH protocol enhances the scalability of Bitcoin mining and makes it significantly more accessible from a financial standpoint. Thus enabling ownership of any amount of hashrate starting from just 1 TH/s.
NFT Management Process
As previously mentioned, each NFT by GoMining represents a specific mining potential. Two key attributes define it: computing power, measured in TH/s, and energy efficiency (W/TH). Users can set these metrics for all newly generated NFTs and subsequently enhance them.
Digital miner creation interface
Alternatively to generate new NFTs, users have the option to purchase digital miners from the secondary market. They are accessible through the GoMining marketplace and other trusted platforms such as OpenSea and Getgems. These newly acquired NFTs will commence mining BTC from day one upon purchase.
All digital miners GoMining offers boast an energy efficiency level ranging between 35 and 20 W/TH. The latter aligns with the attributes of the most modern physical mining devices available on the market in 2024. Compared to the complexities of purchasing and setting up an expensive miner, GoMining presents a streamlined, swift, and user-friendly solution. As of the time of publication, prices for basic 1 TH/s digital miners start at only $22.99.
The mining power of any digital miner can be increased to the desired value, up to 5000 TH/s. It is equivalent to an entire array of mining equipment operating Bitcoin 24/7. The 99% uptime is guaranteed by the GoMining website. Users can enhance their NFTs according to their mining strategy. They can elevate their mining potential to any desired level or opt for the batch improvement feature the platform recommends.
To assess the potential profitability of a digital miner before purchase or the feasibility of upgrading existing ones, users can rely on a convenient Bitcoin mining calculator. This tool evaluates the expected ROI based on historical data. Payments for miner purchases or upgrades can be made in USD. Users can also use GOMINING (the project’s native token) or the fiat currency of the user’s region.
Digital miner upgrade options with expected ROI
The cost of electricity is another crucial factor in ensuring the sustainability of mining operations amidst market fluctuations. GoMining strategically selected data center locations. Thus, digital miners’ owners gain access to mining using some of the most cost-effective electricity resources globally. The energy price will be $0.05 per kWh. By comparison, according to Statista, the average electricity costs in the UK in 2023 were $0.44 per kWh. It was $0.17 per kWh in the US and $0.08 per kWh in China and the UAE.
Bitcoin Mining Strategies
Upon purchasing the digital miner, the company handles all maintenance and equipment placement responsibilities. Users are left to manage their mining strategy independently. They can choose between earning rewards through Solo mode or as a pool member in Pool mode.
Solo and Pool modes available in the “Game” tab
The main peculiarity of engaging in Solo mining is to maximize the electricity discount rate. However, each method has its own complexity and efficiency. With Solo mining mode, users’ rewards are delivered daily proportionally to the amount of Bitcoin mining power they own.
For those seeking a more interactive mining experience, Pool mining options offer an alternative scenario. Multiple holders join together in virtual pools to compete for mining a block. Similar to real-life mining experiences, pools with a higher hash rate have a better chance of success. In this case, the rewards could potentially be higher than those in Solo mining mode, although only successful block miners receive them. The Pool mining mode is available to any holder of an NFT of 10 TH/s or higher.
GOMINING Token, veTokenomics, and Governance
The choice of mining format is not the only decision in which GoMining focuses on users. The company has launched an advanced voting mechanism within its ecosystem based on the project’s veTokenomics. This system is designed to grant users access to a key DeFi mechanism – governance rights. All ecosystem members access this feature through veGOMINING votes obtained for staked GOMINING tokens. The lock-in period is flexible, ranging from 1 week to 4 years. Through this mechanism, users can influence the platform’s development, propose ideas, and participate in the distribution of rewards.
GOMINING Token Burn & Mint model
In turn, the GOMINING token, currently traded on several major exchanges such as MEXC, Bitfinex, and Gate.io, is available on both the Ethereum (ETH) and Binance Smart Chain (BSC) blockchains. The deflationary veTokenomics model stimulates an increase in the price of the GOMINING token by continuously reducing the number of tokens in circulation through burn and mint cycles.
Platform Credibility: Is GoMining a Scam?
From a blockchain standpoint, it’s worth highlighting that GoMining is a Certik-audited project, ensuring the highest security and reliability standards. Additionally, their native token, GOMINING, is supported on a wide range of tier-1 exchanges, further bolstering trust in the project.
GoMining has been making significant strides in the media landscape, with CEO Mark Zalan often featured in press interviews. He’s been sharing insights and updates with reputable platforms like Forbes, Cointelegraph, and others, shedding light on crucial product enhancements, strategic initiatives, and groundbreaking solutions.
GoMining actively integrates new technological trends, which is evident in its collaborations with established Bitcoin mining entities like Binance Pool and Bitmain, a leading mining hardware manufacturer. The recent partnership with The Open Network (TON) heavily aligns with this strategy. Through this collaboration, GoMining launched the GoMining Whales NFT collection, pioneering the ability for TON network users to mine Bitcoin using NFTs on their preferred chain.
Bottomline
GoMining’s innovative application of NFTs in Bitcoin mining offers a novel and accessible entry point for individuals looking to participate in crypto mining. With its focus on simplicity, profitability, and governance, GoMining shows potential for expansion and development within the crypto-mining landscape. It’s advisable for those considering involvement to conduct their own research before engaging with the platform.
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