IOTW exploits IoT, a new blockchain algorithm to help miners generate coins with electrical devices

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As founder of the Elevate Group, which is a co-hosting structure managed for bitcoin mining, I did everything to analyze how both ico & # 39; s mining are structured that the cloud operates mining. So I think I am particularly qualified to write this article, and I hope the reader benefits from it.

Yes, this is also a piece of marketing on the Elevate Group, but there are no tricks or "specials" or something like that, I just pointed out the relevant truths and ask some pressing questions about the industry as a whole . All my numbers come directly from the companies' websites, all this information is real and I encourage you to check it yourself.

So let's start with a basic summary of what exactly bitcoin mining is and if anyone tries to complicate this response, they're saying nonsense. Bitcoin mining offers two functions, protects the bitcoin network and verifies transactions. We, the miners, are boring data processors. Here, this is what we do. To make the mining sector profitable, we want to keep costs down. So, if you're a cloud mining company and you're spending money on advertising, marketing and beautiful offices, guess what? This means that your mining profits will have to cover those expenses, and when you take a mining company like Genesis, which does a lot of marketing and has many of these types of expenses, what do you think happens? Yes, they need to cover their costs and the way they do it is through the mining profits, the mining profits of their customers. So you buy a mining contract, buy the miners, put them in their structure, my bitcoins and then what happens? Right, first they pay their employees, they pay their marketing, their rent, ok you get the picture. When all these expenses have been made, they sit down with what is left of YOUR mining profits and say something like "how much of what remains from us giving to the customer?". You would think that after paying those expenses you will not have to pay much, wrong.

What you have to pay now is the earnings of the Genesis companies. Does Genesis make a lot of money? Probably yes, and you know that as a purely mathematical fact, the more money you earn Genesis, the less money you have to pay to the buyers of their contracts? This is just simple math; if they have profits of $ 100 and their contract requires to pay $ 50 in contracts, their profit is $ 50. Now, if they pay $ 30 in mining contracts, their profit is $ 70. So you go there, plus Genesis does, less must give buyers their data mining contracts. The problem is that most people do not know much about the mining industry, but love passive income, and they know that Genesis is great, so it gives them comfort. They do what is convenient, not knowing that there are much more profitable options out there.

Before you go on, let me give you some other facts. Here's what Genesis mining has posted on their website as their latest special price & # 39;:

Back in stock (Limited Time Offer)

Now, if you know some bitcoin mining You know that Bitmain is the largest supplier of the most stable ASIC miner, used to extract bitcoins from almost all of us commercial miners. We sell the Bitmain s9 13.5 TH miner for $ 1,299 at the moment. The price range I see for those on the market by retailers is anywhere from $ 1,150 up to $ 1,800 and that could be without a power supply and no subsequent service like mining for you, maintenance and hosting more important.

So we take an average price of $ 1,500 for a 13.5 TH machine. Again, we can use math to derive the simple fact that Genesis's special price of $ 284 for TH equals $ 3,834, so you'll spend so much to get an equivalent of an ASIC s9 miner selling for around $ 1,500. So why do people pay a lot more than they have to?

I think it's for two reasons. First of all, Genesis was one of the first, if not the first, to offer cloud mining. So they arrived in an era when mining was very young and the margins were fat. They could charge what they wanted because the bottom line was that if you wanted to extract it and did not have the tools for commercial extraction (for example, ease, engineers, low energy costs), then you saw Genesis as the 39, only viable option. It's not like that anymore, there are companies that are able to provide much better options. Before entering this, there is another problem with cloud mining. The perfect example is what happened with Hashflare in June; Suddenly, Hashflare said they would not distribute mining profits for bitcoin contract holders. Internet was full of YouTubers as angry as their money stuck.

Despite the not so special pricing model, and the fact that cloud mining contracts are not a good way to go, cloud miners charge a maintenance fee on top of it. So with Genesis they charge 14 cents for TH per day (https://www.genesis-mining.com/pricing). This is a heavy tax; at Elevate Group (elevategroup.io) we provide free maintenance, free hosting and our energy costs are 5.5 cents per KwH. This is a big savings, and you pay around $ 96 for TH instead of $ 284 for TH.

The last thing that makes no sense is that Genesis offers a 5-year contract, this is worrying because everyone in the industry knows that an ASIC miner lasts about 2-3 years, so what are they doing? This is a question I can not answer and, frankly, I would not be surprised if they had a "fine print" section of their contract to explain how the stars must be to honor them.

Turning to the ICO mining sector, I point to a simple function that should make anyone think twice. Remember, it's about keeping costs down and if you're doing an ICO, you're also trying to raise as much capital as possible. This means marketing expenses, ie overheads, facilities and more. So where does this money come from? You guessed. Very often, if not always, investors pay all these costs in an ICO and, to make matters worse, nobody really checks a smart contract code to see what they're really spending and where. So, in an ICO, it is not uncommon to buy a token worth $ 500 and get a $ 200 worth of mining power. It's just like that.

So, why did I create Elevate? Because I understand that mining is simple, boring, and the main thing you need is low-cost electricity and low costs. In Siberia, where our mine is located, energy costs are among the cheapest in the world. In addition, we are in the same city as the Bitmain repair facility (https://news.bitcoin.com/bitmain-opens-repair-center-russia/), which means we can offer free maintenance on your miners, and you do not have to ship your miner to China when he needs repairs. This is a feature that is so advantageous, very few people can compete. We took all these advantages and decided not to do an ICO and to skip the model of mining cloud, a model that I think is going away. We kept it simple, we kept the costs down, we did not spend a lot of money (your money) on marketing, so we could offer you the most competitive and profitable mining platform in the world. So, how does it work?

Easy, buy a miner, place it in our facility, manage it for you, host it and keep it. We pay your profits every month and charge a reasonable 20% profit management fee. When we take into account the fact that we are selling machines at such low prices, and that we do not charge for maintenance or hosting, and our energy costs are lower than most commercial mining companies, what we get is a model that practically transforms the passive income investor into a commercial miner. This is what we do, we have made mining accessible and much more profitable for people who can not otherwise open their mines. For an experienced investor, this is a dream come true, and now that word of mouth is doing marketing for us, we expect our name to come out there and I hope they show people that there are different options than typical ICOs and cloud contracts mining.

In a sector and in a world that is moving at this rate, innovation and efficiency play an important role in success. We believe that by placing the needs of investors first, we will succeed in bringing the new era of bitcoin mining to individual investors. Not through an ICO and not through a cloud mining contract, but through the good sense of old-fashioned business. What does it mean for us? It means keeping costs down, thinking first about your customers and making management available so your customers know that you care. This is what we did. We have organically cultivated our community of telegrams and, even if it does not have thousands of members, almost everyone knows each other by name and almost all of them are my owners. I believe in the blockchain and I think bitcoin prices will appreciate significantly in the coming years. Mining is the stable and passive way to accumulate bitcoins and keep it in the long run.

Genesis means the beginning and, at the beginning, Genesis has provided a valuable service. Now is the time for other more efficient platforms to get on the stage and offer the true value that investors seek. We are doing it and we are having fun at the same time. Join us in the new era.

Amir Ness

elevategroup.io

Telegram: https://t.me/joinchat/G_33-0m8bs5BGOxkqsHbDQ

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