Hello icarians, today we would like to share some information with you about Bitcoin mining, which our project entails.
It has been a profitable venture for over 10 years, so let’s dissect what it consists of, its risks & rewards.
What is Bitcoin mining, how does it work?
Bitcoin mining, or any other crypto asset mining, is the process of solving cryptographic equations using computing power in order to validate transactions, therefore verify blocks within that particular blockchain. To clarify, a “block” is simply an amalgamation of transactions in the blockchain. Without blocks being verified, there can be no transactions within that blockchain.
To this end, miners are rewarded in freshly minted bitcoin for contributing their computing resources to the network.
One of the main variables that contributes to mining yield is hash power (also called hash rate). This relates specifically to how much computing power a piece of hardware can contribute to the network in terms of solving those cryptographic equations.
Higher hash power > more cryptographic equations solved > more transactions validated > more blocks verified > higher Bitcoin mining yields.
So, it’s pretty obvious that hash power plays a huge role in this world. This industry is so huge that it actually warranted manufacturers to produce a new type of hardware specifically to maximise the potential for Bitcoin mining (& other coins nowadays). It’s not surprising that this piece of hardware is more powerful than any other when it comes to mining Bitcoin — an ASIC (Application-Specific Integrated Circuit).
These machines are built with 2 things in mind:
- Reduce power consumption
- Increase hash power / rate
At icarus.finance, we produce our own ASICs, which allow us to offer a higher hash rate than standard products which are purchasable on the market.
The standard unit for mining Bitcoin in regards to hash rate is TH/S.
To put things in perspective, the latest ASICs available in the market offer ~ 100–110 TH/S hash rate, and they cost upwards of $30,000 without counting electricity & maintenance costs.
The second most important variable for Bitcoin mining is mining difficulty. This process is inevitable and happens naturally over time. The more time passes, the harder mining becomes.
Miners compete against each other for limited block rewards. With more participants and more computing power, the hash power of the entire network increases accordingly. This process also contributes to this increase in difficulty.
What this means for users is that as time goes by, new hardware is not just a “nice to have”, but eventually it becomes a necessity. This is because a low hash power due to outdated hardware can result in an actual loss, especially when we consider electricity costs. This is why we see new ASIC models released in the market every single year, even through a pandemic, and through the biggest shortage of computing hardware the world has ever seen.
Hash power and mining difficulty go hand in hand. As difficulty goes up, the hash power needs to go up to offset this loss, otherwise the user itself will be at an inevitable loss over time. Even though difficulty increases automatically, hash power doesn’t! It’s up to miners themselves to invest in their own hardware to ensure it’s profitable continuously.
Power Consumption / Electricity costs
The third most important variable affecting Bitcoin mining yields, and the whole industry, is power consumption.
Bitcoin mining uses a lot of computing power, which demands an equal amount of electricity power. Countries with high electricity costs make life difficult for users trying to get into Bitcoin mining.
Not only do users have to think about mining difficulty and how much hash power they generate, but they also have to offset this with how much electricity they actually pay on a monthly basis. These 2 factors alone are why older machines become obsolete, as the hash power generated doesn’t offset the cost of electricity, when we add mining difficulty to this equation.
The best way to combat this is through renewable energy and power efficiency. In fact, because of Bitcoin, institutions and governments are far more aware of how much power is actually wasted generally than they were years ago.
However, for regular users who do not have resources to invest in solar panels and wind turbines, or tens of thousands to invest in the latest ASICs, what options are they left with?
We are very aware of all the factors mentioned above, this is why we decided to create icarus.finance. Users from all across the world, regardless of their social or financial status, should have the opportunity to participate in this long term profitable venture.
We remove virtually every barrier to entry because:
- We cover all costs associated with mining
- You don’t need to worry about mining difficulty
- As difficulty rises, we upgrade our machines
- You can start mining for as low as ~ $20-$21
- If you no longer want to mine, simply sell your hash rate token on the open market
- Traditionally, you would have to dispose of your hardware
- We have optimized all our machines and facility to maximise hash power while lowering power consumption
- This process is actually quite technical, not something a regular user could do without experience in this space
When we first brainstormed icarus, we identified a gap in the market because there was not a single fair and rewarding mining project out there. We saw hash rate tokens at 6x the price of ZBTC, offering 10% the hash power we offer — this is not an exaggeration and we were quite amazed when we conducted initial market research.
We believe the reason there aren’t fair mining projects out there is because owning and maintaining a mining facility is more hard work than forking a yield farm type project. On the other hand, we also see mining projects so large that they seem to have lost sight of their customer base and what they want.
Our goal is and will always be the same: to offer you a safe, sustainable and profitable environment that allows you to earn your favourite crypto assets over time.
Right now you can already mine / earn $BTCB and $ETH through our hash rate tokens, but stay tuned for the future, you never know what other top 10 you may find at the Star Cluster!
A huge thank you to our community once again who keeps growing and interacting, we love to see it!
$ICA $ZETH $ZBTC