Why Startup supported by Coinbase Coinmine's new mining platform may not be a good idea


Despite the current low prices of criptos, a new cryptocurrency mining device has just been launched by Coinmine, a startup supported by Coinbase Ventures, according to Business Insider. Selling for $ 799, it is highly regarded for its ease of use and marketed as the perfect mining rig for everyone. However, some observers remain convinced that, considering the depressed market, buying the drilling rig may not be a smart investment move at the moment.

Anyone can start mining with just $ 799

The new gadget, called Coinmine One, was launched last week with the promise that anyone can easily extract the encrypted even if they are not computer experts. Instead of assembling their own complicated mining platforms, miners could simply buy the new mining gadget, which sells for $ 799, connect it to their home's Wi-Fi and then select the currency they wish to extract.

CoinMine's co-founder and CEO, Farb Nivi, highlighted his ease of use and stated to Futurism that:

"Coinmine One is for everyone, you do not have to be an encryption expert or a hardware and software expert."

However there are only some limitations. According to Fortune, Coinmine One is not powerful enough to extract Bitcoin because it uses only normal GPU chips. At the moment, owners can only use Ethereum, Ethereum Classic, Monero and Zcash, but the company promised that the device, which has its own operating system, will add more cryptos in the future.

But potential profits may not be worth it

But not everyone is convinced of the potential of Coinmine One. Futurism made some calculations and found that, based on the average cost of electricity in the United States, profit margins are quite small and may not be sufficient to cover the cost of the device.

According to the publication, the use of the device for my Ethereum will give owners a profit of just $ 1.37 a month. The situation gets worse if Coinmine One is used to extract Monero since the net owners will be $ 0.70 per month. Finally, owners should not try to use the device to extract Ethereum Classic, as they apparently will lose $ 1.53 a month.




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