Bitminer - Sustaining the CryptoWorld

wealthcontroller (34)in #blockchain • 6 years ago

As an increasing number of people get involved with cryptocurrencies in some way, particularly retail rather than professional investors, regulators have taken a keen eye on the industry. But it’s not just bitcoin they are looking at. The crypto-space has continued to develop with initial coin offerings (ICO) and blockchain technology beginning to be used in large corporations. The developments have brought a varied response from regulators across the world in a number of different areas. Each authority has looked at various parts of the crypto-world from mining to trading and assessed how they should be regulated. Here’s a quick breakdown of each of the areas regulators have been looking at.

Mining is the process CNBC explained in its previous feature on blockchain of how cryptocurrency transactions are validated on the blockchain. Mining involves purpose-built computers and large electricity consumption, something that has concerned governments, particularly in China.

PROBLEM CAUSE.

Blockchain and mining have been on investors’ lips for the past few years, and they observed a huge spike of interest since 2017, along with the surge of the price of Bitcoin and other cryptocurrencies.

Today, many think that Blockchain will revolutionize business and redefine companies and economies. However, cryptocurrency mining, the fundamental architecture behind the Blockchain ecosystem, is an energy intensive activity and as such it comes potentially with a large carbon footprint, which requires attention.

As reported in several publications and online resources, the power required for worldwide crypto-mining activities has increased fivefold in less than a year, reaching an amount high enough to sustain the energy requirements of whole countries such as Peru, Portugal or Israel. This figure is growing exponentially, and is expected to double in the next twelve months, up to 150 TWh/year, as much as the yearly energy consumption of the entire Netherlands. This trend is, clearly unsustainable, but is deemed to continue due to the rising difficulty of mining operations and the increased competition in the field. Miners need energy for executing computations and for cooling their equipment, but most of them do not really pay attention to where they draw it from – they only care about its low cost. This leads to an exploitation of existing fossil-fuel and other non-renewable sources, regardless of the impact they have on the environment. The rising price of cryptocurrencies makes the investments in mining increasingly worthwhile and, as a consequence, increases the energy required to perform such operations, fueling a vicious cycle.

As of today half of the annual power generation capacity additions comes from renewables, with the industry growing at record-high levels over the last decade. Renewables could make up two-thirds of the energy mix by 2050, with significantly improved energy intensity. Cost of renewable energy generation has also reduced massively over the past few years, thanks to the rapid fall of the cost of technologies and the development of a larger-scale global industry, and there is now a general consensus on the competitiveness of renewables with fossil fuels.

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BITMINER FACTORY SOLUTION
Following the cryptocurrency wave, we have ended up being at the forefront of innovation in the field, leading the way to a sustainable process for mining cryptocurrencies. Some publications are starting to suggest that renewable energies are the future of cryptocurrency mining, and we will be among the first in realizing such a dream.
This solution is based on 4KEY pillars listed below:

Committed usage of clean energy: Bitminer Factory seeks to use an increasingly higher amount of energy from clean power sources, such as hydro and solar plants. We will place our decentralized mobile farming equipment close to eco-friendly sources, drastically reducing the amount of CO2 we would require if we used traditional energy plants.
Reuse of otherwise-wasted energy: Energy plants all over the world, either renewable or not, often have energy left that is not used and goes to waste. We have set up partnerships that allow us to tap into these energy sources, minimizing the need of producing additional energy for our mining purposes, benefiting the environment while granting us a lower-cost power supply
Flexibility through mobile mining units: Our mining units can be easily moved around (think of them as “on-the-wheels” autonomous computing containers), therefore it will be easy for us to reach the plants that have the highest spare capacity from time to time, or new purposely built renewable power plants.
Diversification through Renewable Energy asset ownership: This will strengthen our position to achieve our goals. With 30% of the proceeds of the ICO, exceeding $20M, we will invest directly in the construction of Solar/Hydroelectric power plants. The 100% clean and renewable energy outcome will be used to directly power our mining equipment. Energy projects are capital intensive and require a significant scale: for this reason, we chose to invest in Energy projects only past the $20M mark, still maintaining our commitment to a greener mining solution if proceeds will be below $20M. Owning custom-designed renewable power plants will allow us to achieve even lower electricity cost for our operations, cutting out all the intermediaries between energy production and utilization. Furthermore, we will be able to sell energy to the national grid, generating an additional, stable stream of profits, to be used for our token-holder and for reinvestment in our operations.

Bitminer Factory solution allows diversifing of investment on both mining and energy equipment. This will ensure the stability and sustainability of the solution going forward, reaching a point where the cheap and eco-friendly supply will be a key differentiator among the numerous competitors.

MINING EQUIPMENT - We will use GPU-based and ASIC-based equipment, to mine different cryptocurrencies.
1 GPU-BASED EQUIPMENT GPUs (Graphics Processor Units)

COST
DURABILITY - Obviously, a fast GPU that lasts few months is not the best investment; also, while abundant information is available online with respect to the speed of each card, no statistically-significant data is available with respect to the durability. How to find the right model and the right make for your investment? That’s where our experience kicks-in, as we have extensive historical data on sustained performance, temperature, and failure rate of dozens of different type of GPUs, so that we can be confident to choose only what is the best and will be the best for a longer time, ensuring much better ROI.
ASIC-BASED EQUIPMENT

BITMINER TIMELINE FOR PROPOSED PROJECT.

BITMINER INFRASTRUCTURE
As we have seen, mining requires energy – a lot of it! Furthermore, the energy supply needs to be reliable and cheap, and we want it to be renewable. Thanks to our extremely experienced team (our founders designed and built plants for a total of 1000+ MWp, in the past), we have already secured multiple energy sources, both in Italy and Bosnia, with a hard-to-beat price of 0.055-0.075 €/kWh, which we expect to lower even further. Our machines will be co-located with the energy plants, to minimise the energy distribution cost and leverage excess energy right where it is created, and will be able to move whenever new, better opportunities will arise.

Also, the team has designed two proprietary housing solutions for their machines, Gigapod, to house up to 5000 units (GPU or ASIC), and Mobile Mining Unit (MMU), to house up to 300 units. We studied every detail of it in order to optimise:

COOLING AND RELIABILITY
Thanks to CFD (Computational Fluid Dynamics) analyses, we designed ample paths to allow air in and out of the Gigapod and of the MMU, while consuming just a fraction of the total energy. An advanced filtering system will allow air to pass, blocking dust or other contaminants, ensuring reliable operations in any environment.
COMPACTNESS
Each Mobile Mining Unit (MMU) can house up to 300 units (GPU or ASIC) in a compact footprint, while each Gigapod can house up to 5000 units. Furthermore, the MMUs can be moved cheaply and quickly, as they are base on standard containers.
MONITORING
A dense net of sensors are embedded in the Gigapods and in the MMUs, allowing our team to monitor performance, temperatures, power consumption, and state of each piece of equipment, thus letting us actively prevent and identify any hardware malfunctioning.
MAINTAINABILITY
Each machine is accessible easily and rapidly, allowing for prompt maintenance when needed. A detailed dashboard and clear labels/indicators allow every operators to immediately locate the machines that need an intervention.

RENEWABLE ENERGY PROJECTS (REPS) by BITMINER FACTORY

At Bitminer Factory, we are committed to:

Make the Blockchain sustainable, by using renewable energy for mining purpose
Deliver outstanding ROI to our Token Holders. Renewable Energy Projects will strengthen our position to achieve both the goals above.

Renewable Energy Projects will strengthen our position to achieve both the goals above. With 30% of the proceeds of the ICO, exceeding $20M, we will invest directly in the construction of Solar/Hydroelectric power plants. The 100%
clean and renewable energy outcome will be used to directly power our mining equipment. Energy projects are capital intensive and require a significant scale: for this reason, we chose to invest in Energy projects only past the $20M mark, still maintaining our commitment to a greener mining solution if proceeds will be below $20M.

Owning custom-designed renewable power plants will allow us to achieve even lower electricity cost for our operations, cutting all the intermediaries between energy production and utilization. Furthermore, we will be
able to sell excess energy to the national grid, generating an additional, very stable stream of profits, to be used for our token-holders and for reinvestment in our operations.

Our team is unique in allowing the delivery of such an ambitious pair:
Cutting-edge mining and custom-designed and built Renewable energy projects. In fact, among our founders, we have a total of 30+ years of experience building renewable power plants, for a total of 1000+ MWp installed in various continents.

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Solar Project built by Bitminer Founders 11MWp in Pernambuco, Brazil. Client: Enel Green Power

TOKEN ALLOCATION AND ISSUANCE
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BMF will be allocated according to the pie chart above.
The chart means that every 88 BMF purchased by Token Holders, 10 BMF will be issued to Bitminer Factory Management and 2 BMF will support our Bounty Program and marketing effort. All BMF tokens will be issued at the End of the ICO, on 30/9/18, to Token Holders who have purchased the tokens

TOKEN STRATEGIES
BMF Token Holders may benefit from the mining contract embedded in the BMF Token by Holding It, Trading It or participating in our BuyBack Plan. Holders will benefit from yearly payouts in Cryptos that will be proportional to the amount of BMF each Token Holder has in relation to the overall amount of BMF Tokens in circulation. BMF will be listed on selected Crypto-exchanges as well; we plan to implement on our website an in-house trading platform for BMF too, as we want to ensure liquidity for BMF. To boost liquidity and value, we developed a BuyBack Plan. Every quarter from the End of ICO (30/9/18), Management will issue quarterly operations reports to inform Token Holders on project status. Depending on crypto-market conditions, we will allocate part of the cash flow from operations to Buy Back existing mining contracts, namely BMF, thereby increasing market liquidity and token value. Buy Back will be reiterated every quarter. We aim at buying back BMF at 1.1$ per token at the end of Q1 and to increase buy back price by 10% (of nominal token value) each following quarter. Despite we are calling it a “Buy Back”, the transaction will be a “barter” between two digital products: 1 BMF will be returned by its Token Holder in exchange for an amount of BTC or ETH equivalent to 1.1$ at the time of the first Buy Back. BuyBack will be paid out in BTC or ETH only. All conversion rates (BTC or ETH or any other coin to $) will be taken transparently on Coinmarketcap.com.
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