Learn more about mining and why there is a strong case for decentralized mining projects!
https://medium.com/@maximinecoin/why-it-is-smart-to-invest-in-decentralized-mining-projects-6aa9b57d0929Mining, mining, mining. It seems like the whole world is murmuring this word in unison when it comes to making a fortune in this digital age of crypto technology. So, what exactly is mining and just how do you get onboard this money-making wagon?
Mining refers to a process whereby people or corporations compete to solve complex mathematical equations (products of encryptions found in blockchains) to validate a bundle of transactions, also known as blocks. The incentive to complete this complicated work process is to be rewarded with a “block reward” (standing at 12.5 BTC as at February 2018), which often take in the form of tokens. Now, if this already sounds complicated to you, you’re not alone. Neither do you need to panic. All you need to know is summarized in a 5-minute read below:
Let us bring you through an in-depth cost-benefit analysis of the reality of mining:
1. Hardware costsIndependent Mining: Ranges from US1,000 to US$ 3,000 for a decent mining rig (Hashing power: 8 TH/s to 14 TH/s).
Decentralized Cloud Mining: None.
2. Shipping costsIndependent Mining: Yes. As with anything else that you order online.
Decentralized Cloud Mining: None.
3. Customization costsIndependent Mining: Yes. Additional items such as power risers (to fit multiple GPUs into PCI slots on your motherboard) and custom cases (to fit multiple graphic cards). Also crucial is a motherboard and power supply units to handle multiple GPUs running all at once.
Decentralized Cloud Mining: None.
4. Cost of spare parts in case of breakdownIndependent Mining: Yes. You are your own back-up.
Decentralized Cloud Mining: None.
5. Cost of electricityIndependent Mining: 21.56 cents per kwh in Singapore vs 12 cents per kwh in China1 (Increase in electricity tariffs in SG by 6.3% per kwh from 1 Jan 2018).
Decentralized Cloud Mining: None.
6. Opportunity costs incurred during delivery timeIndependent Mining: Yes. Dependent on how accessible your location is. You cannot start setting up, not to mention start running your rig before the equipment arrives.
Decentralized Cloud Mining: None.
7. Cost of coolingIndependent Mining: Yes. Cooling is essential in ensuring that your rig continues running at optimal speed and earning you profit without getting dangerously overheated.
Decentralized Cloud Mining: None. In addition, most decentralized mines are located in the cooler northern regions of China, thus reducing the need for artificial cooling. This then translates to lower costs for users.
8. Excessive heatIndependent Mining: Yes. A byproduct of powering intense, high-processing units.
Decentralized Cloud Mining: None
9. Loud noisesIndependent Mining: Yes. A byproduct of powering intense, high-processing units.
Decentralized Cloud Mining: None.
10. Diversity in mining portfolioIndependent Mining: Expensive to achieve. Up until recently, users must run both AISIC and GPU to be able to mine all coins in the market. Mining multiple tokens essentially means purchasing multiple hardware rigs.
Decentralized Cloud Mining: Available across most decentralized cloud mining platforms (i.e. Genesis Mining, Hashflare, Minex etc.)
11. Flexibility in mining portfolioIndependent Mining: Expensive to achieve. See point 10 above.
Decentralized Cloud Mining: An additional element to offer greater flexibility in mining portfolio to users. A rare option across most decentralized cloud platforms but offered by up-and-coming projects such as MAXIMINE2.
12. Economies of scale and cost-efficient locationsIndependent Mining: None. Most independent miners perform the mining on a limited scale due to the minimal space of residential locations, this is especially so in the case of Singapore where land and electricity costs are exorbitant.
Decentralized Cloud Mining: Yes. Mining equipment are purchased in bulk and set up in affordable suburban regions of China, USA and Georgia where most of the world’s cloud mines are located. This again translates to lower costs for users.
13. Plans and maintenance costsIndependent Mining: None. You’ve already paid your share through the entire list of costs above.
Decentralized Cloud Mining: One-off costs depending on the commitment period and selected hashing speed. Sometimes, maintenance fees may also apply.
As you can see, the decentralized cloud mining reigns with no questions, with the only downside being how offensively convenient it is as an option. In short, decentralized cloud mining platforms are the new way to go if you want a hassle-free, minimal-cost, low-commitment, multi-optional method of jumping on the mining bandwagon. No more being tied down by heavy equipment costs and server downtimes. No more having to bear with the loud whirring noises and harsh heating from the hardworking processing units.
Don’t be afraid to thank us the day you hit the jackpot.
1
https://www.statista.com/statistics/263492/electricity-prices-in-selected-countries/For real-time updates on MaxiMine, do join in the fun on our social media platforms:
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https://maximine.io/ Telegram:
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https://www.reddit.com/r/maximine/ Twitter:
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https://medium.com/@maximinecoin Facebook:
https://www.facebook.com/MaxiMineCoin/ Bitcointalk:
https://bitcointalk.org/index.php?topic=3247389.0 Github:
https://github.com/maximine
