While anti-records are being set on the market of digital assets on the value of Bitcoin over the past 12 months with it falling to $4,500, mining companies are not losing optimism and are demonstrating new achievements in developing more compact devices for mining coins. The Coinmine startup presented a mining rig on Wednesday, November 14, that looks like a game console and not a farm with ASIC devices. Will the new gaming device be a replacement for cumbersome farms and how will the project be beneficial for the creators and the miners themselves?
Mining Is Losing Relevance, While Mining Equipment Is Not
Bitcoin and its forks, as some analysts believe, will soon start switching to alternative consensus algorithms, because mining will disappear since all the coins will have been mined. But this statement is not stopping technology companies. The new Coinmine project introduced its first product, the Coinmine One hardware device, which “is intended for those who want to earn an income without special technical skills.”
The project received investment support from Coinbase Ventures and Arrington Capital; Coinbase technical director, former mining entrepreneur Balaji Srinivasan, Morgan Creek founder and partner Anthony Pompliano, and co-founder of Product Hunt Ryan Hoover also participated in the financing. Jeff Morris Jr., head of One Ventures, said he supported the project for the sake of further developing the industry and expanding opportunities for ordinary people to participate in helping the crypto infrastructure.
“Coinmine will democratize and simplify the way of becoming a miner, and will present the whole process in a fun and accessible way, which is almost like playing video games,” said Morris Jr. in a commentary for CoinDesk.
The equipment, as the creators of the project claim, will be sold starting mid-December and will cost $799, which is much cheaper than traditional mining farms. Also, there will be a different way of mining coins. In fact, the technology will return to the time when it was possible to mine Bitcoin from a regular computer.
The console will make it possible to mine ETH and ETC at a speed of 29 MH/s, XMR at a rate of 900 H/s, and Zcash at 320 H/s. Next year, after updating the system, it is expected that Litecoin, Dfinity, and Filecoin will be added to the list. It will, however, be possible to mine only one PoW coin on the device. The console itself will consume about 120 watts of power, which is comparable to the energy consumption of a PlayStation 3 during the play. Operations, in contrast to ASIC, are silent, as the sound range is 40 decibels. The developers promise that the system will be automatically updated as changes are made to the protocol and the number of coins increases. Users will be able to track their income and manage it using an application on Android and iOS.
Home Mining Rigs Have Already Been Sold, and No Good Came of It
Coinmine is not the first to develop a compact rig for mining at home. Butterfly Labs, Alpha Technology, and GAW Miners are part of the history of the companies that tried to implement similar PCs with the coin mining function.
The companies could not balance the production process of equipment assembly with the requirements of retail customers, which did not correspond to the road map. Even those who tried to meet all the deadlines could not survive for a long time, especially at those moments when the decline in the cryptocurrency rate began in 2015.
The most famous company among those that had decided to release home rigs was the popular Chinese company Bitmain, which has long gained authority among users. In addition, the organization has access to cheap electricity, so the crypto community trusts Bitmain and uses their mining services. The company still produces low-end equipment that an average citizen of the United States or European countries can afford and install in their garage. The noise and heat generated in the process, however, are still there.
In any case, all the rigs were a smaller replica of classic ASICs, and Coinmine One is similar to a gaming console, which, according to the startup’s experts, should attract many new users and expand the use of cryptographic devices.
Nevertheless, some users fear an influx of scam tokens, which will overload the system as they are added. Therefore, further monitoring and updating of Coinmine One will play an essential role in controlling the mining of “wannabe” coins.