MinedBlock ‘Mining as a Service’ vs Cloud Mining
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A new cryptocurrency service called MinedBlock is launching, that will allow investors to generate revenue from cryptocurrency mining. But with an entirely new model of operation, it aims to go beyond ‘cloud mining’ as it has been seen before to introduce what they describe as ‘mining as a service’.
Cryptocurrency mining is the process of running consensus software which maintains a blockchain’s security and processes payments on behalf of its users, in return for a share of newly minted coins and transaction fees. It is big business, with massive amounts of computing power used and huge revenues generated every day.
In the early days of cryptocurrency regular users could get involved in mining on their home computer, but those days are now gone. Today the electricity costs alone for an ordinary household users would outweigh any revenues they could generate. To make money from mining you need to be in a good location with access to cheaper electricity, be able to purchase power wholesale, bulk buy equipment and have top notch engineers to run your machines efficiently and effectively.
In response to this development many ‘cloud mining’ services popped up. These services allow ordinary investors to buy contracts from professional mining operators who enjoy the advantages described above, and in return receive the coins generated by the mining power they have under contract. This is a nice way for any investor to get involved in mining, but it is far from perfect. The popularity of cloud mining has taken a hit, as most contracts end up failing to generate a profit, leaving investors out of pocket. This has been especially true during the recent bear market which saw price fall below break-even levels for many mining farms.
As prices seem to be ticking upwards now may be a better time to consider an investment in mining, but making a profit from cloud mining is still a difficult endeavour. MinedBlock aims to change this with a new model called ‘Mining as a Service’. The basic goal of this is the same as other cloud mining operators: to allow anybody with no technical expertise to invest in mining with minimal effort. But it differs from the usual cloud mining services in a few key ways.
With MinedBlock buyers will not be locked into a fixed contract on a specific cryptocurrency. A range of crypto assets will be included and mining can therefore be switched to the most profitable blockchain according to market conditions. This variety and agility increases the chances of profitability. Because you aren’t buying a fixed denomination of GHz, as is usually the case, MinedBlock can instead offer a fixed growth strategy, increasing your mining power over time to remain profitable for longer (usually cloud mining contracts generate diminishing returns over time, until maintenance costs eventually exceed revenues). It will also be a fully managed service with mining machines operated by MinedBlock themselves, with a promise of minimizing costs and offering 100% transparency.
MinedBlock will have two tokens of their own. The first will be a registered security token offering a guaranteed share of the company’s profits. The second will be a security token used to investing in mining through the company’s platform. Anyone interested in learning more should read through the whitepaper and then head over to their main website for information about taking part in the MinedBlock token sale.