Since some years with my entrepreneurial group we are deepening into the development and deployment of a mining farm.
We travelled across the world, Europe, Asia, America, South America.
We have kind of found a good place with capable professionals, good electricity prices, good housing prices, and all stuffs necessaries to pursue a proper commercial offer.
Anyway, in the last two weeks I have spoken with dozens of people. And by saying dozens, I mean a lot of dozens. It has been a full immersion in the mind of different people, understanding their objections, the required data to evaluate the service we offer, the scepticism they had.
The aim was to gather information, gather commercial feedbacks and share them with my partners and collaborators to understand how to sell at our best this service.
Well, I must say that the most frequent question was the “total yield”. BUT, if I do pay in fiat currencies this kind of service and I produce Bitcoin, how in the world I can define a yield of the service? We have variables, such as the price of Bitcoin, the difficulty, the total Hashrate of the network.
So, if we pay in Euro, we absolutely cannot define a yield because at the end of the service contract we won’t know how much cryptocurrencies we will have produced.
If we pay in Bitcoin (or other cryptocurrency) we cannot define the yield as well, since Bitcoin is just used as a tool for the payment and the customer is paying the actual fiat currency price not an intrinsic cryptocurrency value.
Unfortunately, many crypto-mining-companies are just not designed to survive the mid-term operation. With this I mean that some of them are just a somewhat/somehow Ponzi scheme, with really aggressive compensation plan for referrers. Others have simply a price that is too high for the service they offer.
And what happens when Bitcoin price drops?
Well, many of them are forced to shut down some miners. This is frequent in cases when you pay a daily fee to the farm for the maintenance, electricity and so on. It’s like selling off your produced cryptocurrencies.
And what happens in this case, when the produced cryptocurrencies are not enough to cover costs?
When the value of your produced cryptos is not enough any more, well, your contract goes in stand-by. I am saying that YOUR CONTRACT goes in stand by. I am pretty sure that the mining farm is still using the machines used for your computational power to mine for their own purposes.
And what are we offering in our mining farm?
Well, we are going to start a plenary commercial coverage in the next weeks but the idea is giving a service with prices that will be really competitive on the market to allow almost everyone to mine at affordable conditions.
You which is the most often objection I receive?
“Well Mike, you had to start mining 10 years ago. Not it’s too expensive and difficult”. You should see my face. I think that when I hear this, I look like this
10 years ago the reward per block was higher (up to 50 BTCs per block), the difficulty was lower. BUT, Bitcoin was worth no more than some decades of dollars and the tools to mine where normal CPU or GPU processors plus some USB keys containing the algorithm.
Low equipment investment --> low return in mined coins.
And the answer I tell them is like: “So why 10 years ago you did not started? Well, probably you did not know about this. So why not starting now, and get 10 years ahead of people coming in the next decade?”.
And guess the answer: “Well, I must think about it”.
When I hear this, I understand that people are not really interested in mining. They are just complaining that they could not enter in time into this ecosystem.
But, as someone wise once said: “The best moment to plant a tree was 20 years ago. The second best moment is now”.