How NFTs lower the barrier to entry of individual Bitcoin mining

    2024.04.02 | exchangesranking | 50onlookers

    Presented by GoMining

    GoMining paves the way for a more accessible and sustainable future by offering an NFT-based alternative to the traditional Bitcoin mining model, which requires significant investments and high amounts of electricity to get going.

    Once easily done even on personal computers, Bitcoin mining — solving a cryptographic puzzle to produce BTC — has evolved into large-scale operations as the difficulty of producing Bitcoin (BTC) has reached a new historical high and continues to rise.

    Furthermore, the upcoming Bitcoin halving event, in which block rewards will be halved, will pose even greater challenges for individual miners, given the increasing pressure from larger players. In addition to the necessity of immense computing power required to get real chances of mining the block, affordable electricity is a vital and difficult-to-find resource for maintaining mining activities in the green zone.

    However, innovations in the crypto ecosystem are reducing the logistical complexity of mining operations and the need for heavy investment, providing an affordable alternative for individuals seeking a way to mine BTC.

    Tokenizing Bitcoin mining

    GoMining, a global Bitcoin mining company, aims to break down barriers to entry for Bitcoin mining. With nine data centers worldwide, GoMining offers an innovative approach designed to democratize access to mining rewards.

    The platform offers an affordable nonfungible token (NFT) based alternative to traditional mining, which is dominated by structures with large financial resources and technical expertise. Utilizing its Liquid Bitcoin Hashrate concept, GoMining attributes the computing power used for BTC mining to NFTs, available for minting on Ethereum and BNB chains.

    Users who purchase NFTs, which secure their ownership of real computing power with values ​​ranging from 1 to 5,000 terahashes per second (TH/s) for each NFT, can receive a share of the BTC mining rewards without having to set up or maintain physical equipment on their own.

    NFT holders can access scaling features and adjust computing power and energy efficiency with just a few clicks. Based on their NFTs’ power, users receive mining rewards daily, which are deposited into their internal or external BTC wallets.

    Creating a rewarding ecosystem

    GoMining platform’s utility token, GOMINING, aims to create a dynamic and rewarding ecosystem. Users can benefit from the token in various platform payments, including NFT purchases and upgrades, and receive an additional 10% discount on electricity charges. For instance, the basic electricity price for GoMining NFT holders is as low as $0.05 per kWh, a cost that could be further reduced by utilizing the platform’s token to cover energy expenses.

    Token rewards are directly affected by the votes from governance. Source: GoMining

    Token rewards are directly affected by the votes from governance. Source: GoMining

    Another mechanic powered by GoMining’s token is its vote-escrow veTokenomics structure, which aims to create and maintain incentivized community governance. By locking GOMINING tokens to the veGOMINING contract, users can obtain governance rights and share the rewards allocated to management participants. Tokenholders can participate in the platform’s voting procedures if they stake GOMINING tokens for any period from only one week to four years.

    The platform’s algorithm permanently removes all GOMINING tokens used to cover electricity and maintenance expenses from circulation through a burning process, which benefits deflation and positively impacts the token’s value. The algorithm also redistributes the minted tokens to service providers, community rewards, stakers and the GoMining team.

    Cost-effective BTC mining

    The upcoming Bitcoin halving event highlights the importance of employing energy-efficient mining equipment to preserve the cost-effectiveness of the mining operation. GoMining enables users to enhance their digital miners’ efficiency seamlessly in only a matter of clicks, which is incomparably easier and faster than scaling and upgrading a fleet of physical mining devices.

    By significantly reducing investment risk and removing the obstacles, GoMining aims to deliver stable real-world value to their clients. The platform, built for simplicity and ease, welcomes users of any level of crypto experience and focuses on building trust through reliable and predictable returns.

    With a current total hash rate exceeding 3 million TH/s, GoMining plans to bolster its infrastructure, aiming to reach a total hash rate of 25 million TH/s by 2025.

    As the difficulty of Bitcoin mining reaches new heights, a new approach emerges where large data centers and cheap electricity are not essential. This shift toward a more accessible and user-friendly environment lays the groundwork for a more inclusive mining future.

    Learn more about GoMining

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