The sudden fall in the prices of crypto coins has risen concerns over the feasibility of mining operations. Although, mining operations are still lucrative in few parts of the world; slump in the price of Bitcoin has made way for diversification in the mining industry by allowing the establishment of mining farms in countries where electricity cost are lower than in China
Better services — New opportunities
Since the beginning of 2019, the prices of bitcoin has allowed a number of mining companies to control a huge portion of the network’s hash rate. And while competing mining farms offered reduced fees and better ROI, the major and established mining farms out-marketed new entrants; moreover, the major farms had the cash flow to very easily grow their hash rate, thereby scaring off new entrants.
And of course with mining, the hash rates are not rising but depreciating.
Since the market leaders have become complacent and no longer improve on their mining farms, new market participants are encouraged to enter the market with confident, knowing that they can also share from the hash rate. Few of these new mining companies have been smart enough to launch their operations in countries with low electricity cost — this has allowed them to be able to compete with the giants of the mining industry.
Moreso newer mining farms are implementing disruptive strategies such as low fees, provision of better service, and transfer of all generated revenue to users and investors.
MinedBlock, is a new mining operation startup that aims to lead the shift to a more globalized presence in mining industry. The mining farm is hosted in Iceland after the team considered several factors such as electrical cost, climate and political factors. This location will open its users and investors to some unique set of amazing benefits.
The Current Condition of the Mining Industry
Major mining establishments have enjoyed the lack of genuine competition for a long time. This has allowed them to control a hefty percent of the mine’s block rewards, charge high fees in their mining operations and even keep transaction fees from block rewards.
- AntPool This company has asserted its dominance over the market and kept competition at bay for a long time by mounting several rigs to monopolise the market. This has allow them to not only control 2.5% of block rewards, but also keep transaction fees.
- BTC.com BTC.com has kept the completion on with AntPool. Although the company doesn't charge 2.5% on block rewards, other fees by BTC.com which adds up to 4% are more than what AntPool takes.
- F2Pool Contrary to what the name may suggest, being a part of this pool is nothing close to free. The pool takes 3% of block rewards and also hold on to the transaction fees. 90
In addition, F2Pool and AntPool have neglected and done little to nothing about the returns of the users. An evident event to this is the farm's operations on Bitcoin Core 0.9.5 which caused them to miss out on possible tens of thousands of dollars during the fork of July 4, 2015. Those funds were the due gains the users — negligence from the part of the pool led to a big loss to the users
MinedBlock to deploy strategies that attract investors and breaks into the market
New market entrants, like MinedBlock, are keen on boosting the quality of their service in order to command increased market share. Hence, they keep their mining operations up-to-date with the latest equipments such as ASIC Bitcoin and Bitcoin Cash mining units and GPU mining rigs.
More importantly, MinedBlock is ensuring that the hash rate is not concentrated in only one country as they plan to build more farms and mount more mining rigs across Europe. This will enable them to utilise many opportunities that are available across the globe.
For instance, MinedBlock, takes advantage of the incredibly low energy costs in Iceland. While the costs of energy are at $0.08 kWh in most regions of China, it is about 2 times lower in Iceland. This reduces the operation cost significantly for the miners thereby increasing their mining profit. Operations remain very profitable for MinedBlock even if the current price of bitcoin forces some major mining companies to barely break-even.
Security Token Offering
MinedBlock is a SEC-compliant project that will offer it's MBTX tokens as a security tokens. To satisfy the requirements of the US Securities and Exchange Commission (SEC); US investors will need to qualify as Accredited Investors. MinedBlock is In fact the first mining company that is offering a security token and is also registered with SEC.
Location advantage
Unlike the Chinese government who have very strong stand against cryptocurrencies and Crypto-related establishments, North European governments and the Scandinavia are leading the way in adopting and accommodating cryptocurrency. This encouraging environment allow mining facilities like MinedBlock, to gain access to insurance services. Thus, the assets mined by MinedBlock will be insured, giving users and investors increased guarantee about their investment and profits.
Highlight
MinedBlock has designed structure that will only charge an initial contract fee; after which there will be no further cuts in users’ block rewards or transaction fee profits.
Official MinedBlock Community links
Web: https://www.minedblock.io/
Telegram: https://t.me/MinedBlockOfficial
Twitter: https://twitter.com/mined_block
Whitepaper: https://www.minedblock.io/assets/MinedBlockWhitepaper.pdf