According to recent researches, Bitcoin mining — or the method of “extracting bitcoin from the blockchain” — consumes the same energy of a whole country such as Denmark.
This is the reason why a new startup called Hydrominer decided to reinvent the traditional mining in order to use an ecological resource for the energy.
So, this is the Hydrominer’s main goal: using an environment-friendly source of energy to be used for the bitcoin mining, having the industry’s lowest carbon footprint.
The power of hydro is the most productive and lowest-cost renewable energy resources in the market. Hydro, in fact, is environmentally friendly, carbon-neutral and natural. So, this kind of power allows mining to have resources sustainably and enables low-emission production. Also, this kind of green-friendly technology is simple, controllable and with an excellent track record.
Using hydropower stations in the Alps region, Hydrominer will reach one of the lowest prices per kilo watt in the whole Europe (currently 85% lower than the average in the old country).
This way, Hypdrominer aims at realizing more and more cost savings by using the water for cooling mining equipment.
Not only is hydro power mining ecologically friendly, but it is also profitable, of course.
The Virtual Economy of Cryptocurrency Mining
Cryptocurrency mining is the system by which new cryptocurrency are created and transactions are verified by the whole network, the blockchain.
A few years ago, mining was profitable even with a common computer, but today mining is a more complex industry with a high difficulty.
Thanks to Hydrominer water powered solutions, the company aims at maintaining the lower temperature at very high density, which is really important for the highest possible mining power in a small place.
What is Hydrominer going to mine?
Probably, the best answer to this question would be the most profitable cryptocurrency.
But, what does it mean? Maybe you already use a tool called “What to Mine,” that shows users what is the best digital currency to mine for the maximum earnings, depending on the used tools and computers.
That said, the price is volatile, and also difficulty rates change anytime.
The higher the difficulty rate is, the more hashing power one needs to mine the same amount of digital currencies. For this reason, Hydrominer would need to adapt as fast as possible because price movements of 20% in one day are nothing uncommon.
Please note that the achieved MH/s depends on the hashing algorithm used by the specific blockchain. So, switching from one currency to another may result in a different MH/s for the same setup.
Cloud Mining
To be more precise, Hydrominer is a cloud mining company.
The greatest part of cloud mining services sell contracts for a set amount of mining hashrate per dollar for a specific amount of time. The user holding the contract is given the rewards generated by the purchased hashrate after the deduction of the cloud mining service fees that include electricity, cooling, hosting, and maintenance.
HydroMiner wants to overcome the woes of cloud mining services by providing an improved mining service with the higher transparency provided by its smart contract.
To do so, in fact, HydroMiner will soon open a token sale for their ERC20 token based on the Ethereum network.
Each token (H20) will entitle its holder to the mining rewards for a single watt used. By issuing the rewards per watt instead of per hashrate, HydroMiner will generate and distribute mining rewards evenly. Compared to historical data of its competitors, HydroMiner’s return would sustain itself despite the increase of mining difficulty.
Hydrominer partners with Bancor
Hydrominer started a partnership with the better known Bancor, a protocol for a new generation of cryptocurrencies that has the main goal of providing liquidity to the tokens based on the Ethereum blockchain thanks to the use of currency reserves.
Token investors will be able to liquidate or purchase the Hydrominer tokens without having to find a counterparty to buy or sell them.
To do so, HydroMiner will deposit 1% of its ICO proceeds into a Bancor token changer smart contract and then expect the Bancor token changer will be operational within 30 days after the closing of the H20 token sale.
Token Sale
The Hydrominer is called H20 as the scientific symbol of the water, as the project aims at being “green-friendly”.
Each H20 will be sold for 0.01 ETH.
That said, the “green mining” Hydrominer will launch its ICO in a few days, currently in five days.
To going deeply, the presale will start on September 25th and will last one week only with a discount price of 25% (minimum investment is 50 ETH).
Then, the token sale will continue starting from October 3rd with a price for four weeks with four different levels from 20% to 5% bonus tokens.
Also, since January 1st the sale will continue and the unsold tokens will be available to be bought in an ongoing sale for any user.
According to information published by the World Bank, there are 0,09 trillion cryptocurrencies. Of course, there is much more money in the world today — more than 7 trillion Gold, 10 trillion USD in cash and coins issued by central banks, 14 trillion in narrow or central bank money, 300 trillion in credit issued by commercial banks and somewhere between 600 to 1500 trillion in derivatives. Taking all this information into consideration and adding the data showing the growth of the public interest regarding this new type of money, we will briefly take a look at the most common questions related to the mining of virtual money.
- Is crypto currency similar to any other money?
Specialists compare crypto currency to gold, by considering its role in the economy. Similar to gold, mined crypto currencies uses the same benchmark. Some even say that mined crypto currencies will outperform gold over time. Estimates show that 15 more years would be needed for mining to create crypto currencies at a value of 10% of gold; moreover, 140 years would be needed to create half of gold’s value.
2. How can one create a business case for mining?
One of the most profitable and environmentally friendly ways of mining crypto currency is by using the solutions provided by Hydrominer. Hydrominer uses the power of the water to obtain a better energy price and also to cool the systems, by creating special mining farms inside sea-freight containers, easy to be transported and installed near the hydro power plants along the rivers in the Alps.
3. What are the costs of such a Hydrominer project?
Let’s take a look at a typical project (from a business and a technological perspective):
- First step — identify and lease a hydro power station that is convenient, with a usable capacity of 100,000 watts
- Second step — order all the needed hardware — this may cost around 200,000 USD
- Third step — after a month or so, the sea-freight container will be prepared and ready to function
- Income to be produced by this mining facility — approximately 50,000 USD per month
- Costs for providing energy and payments for other services — about 10,000 USD
- Funds for further improvement of the equipments — 15,000 USD
- Profit — 25,000 USD
4. What currencies should be mined?
All scalable crypto currencies should be mined — however, software algorithms often choose the most profitable option available (taking into consideration payouts and liquidity, for example).
5. How expensive is the mining equipment?
This depends on the size of the farm, the cooling solutions and the technologies used. For example, a container from Hydrominer — fully equipped and ready to use may cost between 350,000 and 650,000 USD.
These are only some of the aspects that have been answered — for more information regarding crypto currency mining and the launch of the token sale for Hydrominer, be sure to check the official whitepaper available now at https://www.hydrominer.org/wp-content/uploads/HydroMiner.pdf. This online document will offer information regarding currencies, equipment, risk factor and the ICO timeline.
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