Miner One: The Future Of Bitcoin Mining?
Mining bitcoin is not something every one of us can do - the tools required are expensive and loud.
What if there was a way, however, that you could use to mine bitcoin by putting in as little as you want without using a scammy cloud contract?
Well, Facebook's neighbor MinerOne is here to save the day. Currently in ICO stage, MinerOne aims to simplify the cost and work required to mine bitcoin.
How does it work?
At current time, MinerOne is in an ICO stage - at this stage, the company is crowdfunding their project in order to make it a success. The funds raised from the ICO go towards buying enough ASICs (computers specifically designed to mine cryptocurrencies) to mine 107 BTC per day. This will then be spread across all MIO (MinerOne's tokens) holders.
What does this mean? This means 13% ROI (return on investment) per month! You will receive your mining rewards in ethereum through a smart contract. The smart contract will be ethereum based, and related to the percentage of the total MIO tokens you own. At current predictions, you could receive $400,000 return on a $50,000 investment – keep in mind this doesn't factor in a rise of the ethereum price.
What about the environment?
MinerOne will be located in Luleå, Sweden. Not only is this place super cool with blockchain technology, but it is in the northern hemisphere. This means that it is very cold, allowing very little need for air conditioning.
But the ASICs still use electricity right? Yes, however, MinerOne has dedicated itself to being 100% green - they will use only hydroelectric and wind power.
What if Bitcoins price drops significantly?
One of this projects' most advertised aspect is called the "cushion effect". What this basically means is that, even if Bitcoin's price drops to $1500, you would still get a 10%+ ROI.
How? When Bitcoins price drops, there is generally a drop in the miners too - what this means is that the bitcoin mining difficulty also drops. When the difficulty drops, it becomes easier to mine bitcoin, therefore making MinerOne mine more bitcoins than intended.
Not only that but since MinerOne has gotten an electricity price of $0.08, you will always end up with same return in most scenarios, making this a safer investment than bitcoin. And you will, in the long term, be making more thanks to the upwards trend of cryptocurrencies.
Should you buy?
There is always a risk with ICOs. There have been several cases where ICOs end up running away with people's money or just fail to complete their project.
On the other hand, thanks to the “cushion effect” which MinerOne advertises, this could be the safest way to invest in bitcoin, due to the fact that you do not need to predict the volatile cryptocurrency market in order to guarantee yourself a solid return!
Omniloquent was brought to you by @yallapapi. This article was written by @icosandwhich and edited by @flashfiction.
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"One of this projects' most advertised aspect is called the "cushion effect". What this basically means is that, even if Bitcoin's price drops to $1500, you would still get a 10%+ ROI.”
How will the ROI hold up with bitcoin being blow 15,000?
Pretty awesome; could help us actually make some money without having to charge licensing costs for our software, which we cannot do at the moment with our current codebase.