How GoMining is changing Bitcoin mining through NFTs.
In the year The 2024 Bitcoin halving event reduced the block reward to 3.125 Bitcoin (BTC). As a result, the supply of new BTC has decreased, and the profitability of mining companies has declined.
In a new report, Cointelegraph Research examines the current state of the mining environment, including economic conditions and technical developments. The report also covers new approaches to open up Bitcoin mining to retail investors, including GoMining's gamified Bitcoin mining using non-fungal tokens (NFTs).
Download the full version of the report for free here
The effect of Bitcoin's halving on mining profitability
Historically, the hash rate of the Bitcoin network has been variable but follows an exponential growth trend. Significant variations of this trend occur when miners are forced to upgrade to newer and more efficient hardware before each mining event and kill older miners after half an event.
Although the overall Bitcoin hashrate has been increasing significantly, the performance of individual miners is slowly progressing.
For example, Antminer S19j Pro, which was released in July 2021, currently accounts for 34.3% of the total network hashrate and has a maximum hashrate of 100 terashes per second (TH/s). The latest Amtminer S21 Pro announced in March 2024 has a hashrate of 234 TH/s.
Energy efficiency, another fundamental feature of mining hardware, has improved from 29.5 joules per terahash (J/TH) on the S19j Pro to 15.0 J/TH on the S21 Pro. However, the Antminer S21 Pro is priced at over $6,000, making it out of reach for most retail investors.
GoMining's advanced approach to Bitcoin mining
Retail investors should look for alternatives because traditional mining has high entry barriers due to capital costs and knowledge. One option is cloud mining, which allows individuals to rent processing power from remote servers and use them to mine bitcoins.
GoMining takes a different approach by letting its users not rent but permanently own a fixed amount of Bitcoin hashrate. GoMining processes hashrate produced by miners in the company's data centers and as NFTs with different energy efficiency and power characteristics.
Because these NFTs are tradable and transferable, the concept is called a liquid bitcoin hashrate.
The GoMining project has a native Gomining Token (GOMINING) with a deflationary method and various use cases, including NFT modifications, all of which are covered in a Cointelegraph report.
Download the full version of the report for free here
GoMining offers two modes to earn rewards from NFTs: solo and pool mining. The exclusive mode provides guaranteed results and is based on the features of the NFT used for mining. The pool mode mimics real-world mining, allowing users to start their own pool or compete for prizes. The pools are internal to GoMining and rely on cooperative effort, allowing users to earn more than in solo mining mode.
This article does not contain investment advice or recommendations. Every investment and business activity involves risk, and readers should do their own research when making a decision.
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