With Bitcoin mining difficulty at an all-time high, is it too late for beginners to start mining the largest cryptocurrency by market cap? The short answer is No — there are specialized services that make the whole mining process look easy.
Bitcoin mining is a tricky business. It requires expensive hardware equipment, cheap and stable electricity and a lot of maintenance to keep the facility in shape, like cooling systems and hardware updates.
These days, starting Bitcoin mining operations from scratch as an individual is not a good business plan. Many factors need to align perfectly, including geography, energy costs, regulation, weather and the Bitcoin (BTC) price itself. Still, the upfront costs are too high for regular people.
Beginners can start mining by joining specialized mining pools. However, due diligence is needed because mining pools charge fees and split the rewards between participants. The problem with these pools is that they are centralized entities that may not always be transparent or expose participants to risks. For example, during the Crypto Winter of 2022, a mining pool operator halted Bitcoin withdrawals due to liquidity issues.
Bitcoin mining for beginners
Some Bitcoin mining services eliminate the entry barriers for beginners. One example is GoMining, which offers various features that give Bitcoin miners more control and opportunities.
By joining GoMining, users don’t have to buy and set up hardware or maintain the equipment. All processes are conducted online, while GoMining does all the behind-the-scenes work. The mining service has been around for over six years and currently has a power capacity of 350 megawatts across its nine data centers dispersed worldwide. This translates into a total hash rate of 2.1 million terahashes per second.
For more than two years, GoMining has been allowing individuals to access its mining data centers and paying out rewards, even during the crypto winter of 2022 and other bearish markets. Moreover, GoMining is a member of the Bitcoin Mining Council and has MMA legend Khabib Nurmagomedov as its ambassador.
With GoMining, users can access Bitcoin mining through a system of proprietary tokens, including:
GOMINING token. This is the main utility token of the GoMining ecosystem. It enables holders to buy GoMining nonfungible tokens (NFTs) and lock them to get rewards paid in VeGoMining to participate in governance.GoMining NFTs. The NFTs by GoMining represent ownership of the Bitcoin hash rate in its data centers, entitling holders to daily mining rewards.
New tokenomics ensure transparency
Recently, GoMining rebranded and introduced new tokenomics to simplify access to Bitcoin mining, while its native token changed its ticker from GMT to GOMINING to avoid confusion with other projects. The latest upgrade introduced the so-called liquid Bitcoin hash rate (LBH) protocol, which borrows from liquid staking platforms in decentralized finance (DeFi), such as Lido.
GoMining LBH tokens, which come in the form of NFTs, enable users to transparently and securely own hash rate. Holders of these tokens have to pay for electricity while receiving mining revenues, so they end up in a better financial position than traditional miners. On top of that, these LBH tokens can be used in DeFi for borrowing and lending purposes or trading on secondary markets.
With the new tokenomics model, LBH token holders can pay for electricity with GOMINING and benefit from a 10% discount. Also, the model uses a burn and mint mechanism, in which all tokens used to pay for the electricity expenses are burned algorithmically, while the system redistributes minted tokens for community rewards and to service providers, VeTokenomics stakers and the GoMining team.
The new tokenomics brings more transparency while ensuring the NFTs are directly linked to the data centers.
New products, data centers and exchange listings on the horizon
GoMining is expanding its network and plans to introduce new features and products to make the Bitcoin mining process more exciting. By the end of this year, it plans to add 50-megawatt data centers in the MENA region and increase the total hash rate to 3,000,000 terahashes per second. To top it all off, GoMining is also working on a Web3 game and planning to list on top exchanges.
GoMining CEO Mark Zalan said:
“Our objectives encompass broadening the company’s global network through the construction of additional data centers across the world. Simultaneously, we are delving into technologies such as DeFi and other advancements in the blockchain sphere.”
Not all mining software is designed with beginners in mind, but projects like GoMining with easy-to-use and quick-start mining features are changing that, allowing almost anyone to participate in Bitcoin mining without installing complex hardware.
Disclaimer. Cointelegraph does not endorse any content or product on this page. While we aim at providing you with all important information that we could obtain in this sponsored article, readers should do their own research before taking any actions related to the company and carry full responsibility for their decisions, nor can this article be considered as investment advice.