Nfts
How GoMining is Revolutionizing Bitcoin Mining with NFTs — TradingView News
The 2024 Bitcoin halving event reduced the block reward to 3,125 Bitcoin ETH/USDAs a result, the supply of new BTC slowed and the profitability of mining companies fell.
In a new report, Cointelegraph Research examines the current state of the mining ecosystem, including its economic conditions and technical developments. The report also covers new approaches to making Bitcoin mining open to retail investors, including GoMining’s gamified Bitcoin mining using non-fungible tokens (NFTs).
Download a full version of the report for free here
The Effect of Bitcoin Halving on Mining Profitability
Historically, the Bitcoin network hash rate has been volatile but follows an exponential growth trend. Significant deviations from this trend occur when miners are forced to upgrade to newer, more efficient hardware before each halving event and to shut down older mining rigs after a halving event.
Although Bitcoin’s total hash rate is increasing exponentially, the performance of individual mining rigs is growing more slowly.
For example, the Antminer S19j Pro, released in July 2021, currently accounts for 34.3% of the total network hash rate and has a maximum hash rate of 100 tera-hashes per second (TH/s). The latest Antminer S21 Pro, unveiled in March 2024, has a hash rate of 234 TH/s.
Power efficiency, another key feature of mining hardware, has dropped from 29.5 joules per terahash (J/TH) on the S19j Pro to 15.0 J/TH on the S21 Pro. However, the price of an Antminer S21 Pro is over $6,000, putting it out of reach for most retail investors.
GoMining’s Gamified Approach to Bitcoin Mining
Retail investors should look for alternatives, as traditional mining has prohibitive barriers to entry due to capital costs and expertise. One option is cloud mining, which allows individuals to rent processing power from remote servers and use it to mine Bitcoin.
GoMining takes a different approach by allowing its users to not rent but perpetually own a certain amount of Bitcoin hashrate. GoMining tokenizes the hashrate produced by miners in the company’s data centers and creates it as NFTs with different energy efficiency and power characteristics.
Since these NFTs are tradable and transferable, the concept is called Liquid Bitcoin Hashrate.
The GoMining project has a native Gomining token (GOMINING) backed by a deflationary mechanism and a wide range of use cases, including NFT upgrades, all of which are covered in Cointelegraph’s report.
Download a full version of the report for free here
GoMining offers two modes to earn rewards from NFTs: solo and pool mining. Solo mining provides guaranteed results and is based on the characteristics of the NFT used for mining. Pool mining mimics real-world mining practices and allows users to start their own pool or join an existing pool to compete for block rewards. Pools are internal to GoMining and are a collaborative effort, allowing users to potentially earn more than in solo mining.
This article does not contain investment advice or recommendations. All investment and trading involves risk, and readers should conduct their own research before making any decisions.
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