MEGA HAS GONE GIGA

MEGA HAS GONE GIGA with Tokenize Bitcoin Mines Startup
In 2015, the Coin Market decided it didn't like Bitcoin anymore and the focus turned to the blockchain, its underlying distributed ledger.
This was silly, of course, because the two go hand in hand. The market was actually unhappy that the Bitcoin price didn’t hold up. In retrospect what happened to the price makes total sense: more mining was being done than was necessary to support the transactions being made.
Bitcoin production rates are essentially fixed, but difficulty is not. Those of few miners who survived that time laid a name of globally known miner Dave Carlson. Carlson gained his fame and global attention for his his multimillion-dollar mining venture MegaBigPower during the bitcoin downfall of 2014 when “would-be franchise partners” failed to come through on hardware purchases.
His program enables individuals or companies who want to start a mine to step in and become the part of world of Cryptocurrency. MegaBigPower aims to provide mine operators with the know-how to begin hashing quickly, accomplishing this by providing pre-configured hardware at no upfront cost to vetted candidates who are capable of providing facilities and power.
But of course stability is not a way to success you have to come up with new thoughts, ideas, opportunities and risks to run with an adequate pace to keep up with the rest of the world. Hence Carlson now came up with new opportunity in the booming market for initial coin offerings (ICOs). A process that will enable technologists to create cryptographically unique sets, link them to a Blockchain and then sell them as fundraising tool.
He is now launching a new startup called Giga Watt that aims to make Bitcoin mining democratize but this time by enabling the investors to buy a stake in his company.
At an advanced level, the idea is that Giga Watt is tokenizing the power infrastructure that supports the facilities that host and operate equipment.
Carlson quoted while explaining his idea “We're building and reselling crypto-mines. If you want a big mine, you buy a lot of tokens. If you don't want to buy miners, then you let us put somebody else's miners in your spot and get paid. You don't have to concern yourself with how Blockchains work.”
This seems one of the most ambitious and latest attempt to capitalize on the access to capital that is provided by ICO mechanism. Though, it is important to note similar ventures so far have produced varying results for their initiators.
For instance Charlie Shrem, a bitcoin pioneer, pursued to tokenize shares in companies this year, the ICO was eventually fought after months of promotion. Others have fared better with the model, with startup Gnosis raising over $12m in just under 15 minutes by selling 5% of the tokens that will power its in-development prediction market.
Carlson explained that Giga Watt has raised over $1m from undisclosed investors to build out the facilities that would be used as part of the initiative for new investors.
Terms of the deal
The venture has been scheduled to open to the public on 2nd June, Carlson said that Giga Watt is already exploring a pre-sale (and a pre-pre-sale) of its token while building up his team to offer their maximum support.
Carlson aims the idea of solving the issue that the economics that makes Bitcoins valuable have created economies of scale that made it impossible for smaller miners to compete for the rewards produced by the protocol.
The main issue is that many enthusiasts believe decentralized access to the network is the key differentiator of Bitcoin when compared to the centralized online money services it was designed to compete against.
In this situation, Carlson sees Giga Watt as an opportunity provider selling its professional abilities and the cheap power resources that make Washington state one of the more profitable areas of the world to operate equipment.
Those who participate in the sale, Carlson said, will have funds placed in escrow until Giga Watt delivers on supplying the power infrastructure. Giga Watt will, in turn, invest the funds it makes into its own mining capabilities.
"We would have facilities that are occupied for token holders then we have facilities that are wholly owned by Giga Watt," Carlson explained.
The uncertainty of economics
At this moment, even Carlson is a bit unclear on how the economics of the model will come out to be.
While the idea is to sell the tokens for $1 at launch, he conceded that it's possible the market could drive up the price of the asset in such a way that the value could conflict with their utility. Already platforms like this are facing challenges related to this difficult dynamic.
Even then, Carlson said that this is simply a factor that the market will need to take into account as it contributes in the offer.
"People need to understand that our token is something that works best when it's combined with mining or its buying into a co-location facility or a landlord of power," he said.
He further said that investors shouldn't conceive of the token as an asset with boundless utility, or that the token would necessarily provide outsized returns directly.
"I don't want people to buy the token thinking it's going to do the moon," he said. "People are going to be willing to pay more than what we're selling for, but it's not a share ownership of a company."
Another factor to keep in mind is that token owners will be served with mining power in a first-come, first-serve manner, meaning those who buy earlier will have access to the token's real-world utility, and the potential earnings from the mining operations.
On display also are its planned 'Giga Pod' units: mining warehouses that Carlson said have been optimized for efficiency with the years of expertise gleaned in the operation of MegaBigPower, his former operation.
Until the launch, though, he acknowledged that the market needs to now digest the deal and understand how it works. But he believes, if successful, it could be beneficial for the bitcoin network and investors at large.
Carlson concluded: "I firmly feel that every household in America could have a small mining operation. It's a vision and it's possible. But, if the non-miner doesn't understand what the opportunity is, that's the hurdle."