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Bitcoin Mining Today: Challenges and Investment Choices
With the recent meteoric rise in Bitcoin prices, Bitcoin mining investments have begun to attract renewed attention. However, what once was a relatively easy way to earn an extra profit, has now become a lot more complicated for the average person. Mining machines require very cheap electricity in order to be profitable, and even then it is necessary to have the knowledge and expertise to buy good equipment and perform all necessary maintenance and repairs. Investors that don’t want to go through such trouble are left with essentially two options: Cloud mining and colocation mining.
Cloud mining is easily accessible, but most services offer time-restricted hashrate rental, which generally does not produce enough rewards to pay back the initial investment. Some others promise much higher rewards but then turn out to be fraudulent and simply vanish with investors’ funds.. Colocation mining is somewhat safer, but also requires more know-how and a large initial investment to cover miner purchases, electricity costs and potential repairs.
Introducing Community Mining: Infinity Hash’s Innovative Approach
Infinity Hash is pioneering a brand new third option: Community mining. The aim is to create a self-sustaining mining project that provides daily rewards to all its participants. In order to improve accessibility, this form of investment must allow for very small capital allocations of only a few dollars. Additionally, investors must be able to sell back their investment and cash out at any point. Infinity Hash achieved this through the introduction of the shares system:
Infinity Hash shares are participations in Infinity Hash’s mining operation which entitle their owners to a percentage of the mining rewards obtained by the project. Infinity Hash sells these shares to investors, and uses the entirety of the proceeds exclusively to finance mining infrastructure. This ensures that every Infinity Hash share is fully backed by mining equipment, and that no dilution is possible. As more shares are sold, Infinity Hash continues to expand, constantly increasing its mining capacity. Share holders receive daily rewards, which they can withdraw at any time without restrictions. Additionally, they have the flexibility to sell their shares on the open market to other community members.
This revolutionary share system makes Infinity hash one of the easiest and most flexible ways to profit from Bitcoin mining. Nevertheless, there is still the issue of continuity. Most Bitcoin mining investments have a time horizon. Machines become obsolete, and cloud mining rental is generally limited to a specific time period. Infinity Hash aims to create a community of miners that continue to earn rewards indefinitely for as long as they hold shares. This is achieved through the power of reinvestment.
Infinity Hash’s Approach to Long-Term Viability
In order to sustain the mining operation in time, machines need to be properly maintained, repaired or even replaced once they are obsolete. Without that, they would eventually stop working or simply become unprofitable. Infinity Hash tackles this problem by using 50% of the rewards obtained by the mining operation to be reinvested into its infrastructure and mining equipment. This makes it possible to pay for any necessary repairs and machines without the need for additional financing. Moreover, when no repairs or replacements are needed, the reinvestment budget can be used to buy additional machines without the need to issue new shares. The effect is a constant increase in the hashrate backing every Infinity Hash share.
This is a unique feature when it comes to Bitcoin mining investments. With cloud mining, your hashrate is usually flat and eventually ends when the contract expires. With colocation mining, your machines might maintain their hashrate in time, but their efficiency will trend down, as new machine models enter the market and mining difficulty continues to increase. With Infinity Hash, not only does the hashrate backing every share grow with time, but also this hashrate is always being provided by the latest and most efficient machines available on the market.
Flexible Reward Options: Tailoring Your Cryptocurrency Portfolio
While Infinity Hash miners only mine Bitcoin, share holders may also choose to obtain their rewards in 15 other cryptocurrencies, selecting any allocation they prefer. This can be useful for example to select a percentage in USDT to set aside to pay taxes. But there are countless other strategies that may be employed. Users are able to diversify their rewards across multiple currencies any way they want simply by assigning percentages. For example, a share holder may choose to receive their rewards 50% in BTC, 25% in USDT and 25% in KAS. Infinity Hash will then convert the rewards to these currencies and credit them accordingly.
Transparency, Traceability and Trust
Transparency is perhaps the top priority for Infinity Hash. As a community project, it is very important that all share holders are able to view the activity of the miners and follow the rewards from the moment they are generated until they are credited to them every day. This information is made public through the independent data provided by the mining pool Infinity Hash uses. Apart from tracking performance and earnings, each miner is assigned an individual tracking number to be able to distinguish data corresponding to individual machines. This tracking number can be checked in the miner list of the mining pool, and is also visible in the monthly transparency reports and weekly update posts on the Infinity Hash blog.
Thanks to this, everyone can follow to the last detail exactly when, how and for how much every miner was bought; as well as other information such as model, performance and historical earnings.
Reward Mechanics: Calculating and Allocating Mining Profits
The process of crediting the rewards to each individual share holder is pretty straightforward. Daily, after receiving the Bitcoin mining rewards from the mining pool, electricity costs are deducted and converted to USDT, which is allocated to a dedicated wallet for these expenses. The remaining amount is the total mining profit. 50% from this is directly credited to Infinity Hash share holders in their preferred currencies. The remaining 50% is converted to USDT and sent to the public reinvestment wallet. As was mentioned before, these funds are used to finance repairs, replacement of obsolete machines and purchase of additional machines that do not incur the issuance of new shares.
Your Voice Matters: How Infinity Hash Incorporates Community Input
As Infinity Hash is a community project, important decisions on the implementation of changes are consulted with all share holders. These are able to vote for their preferred option through the website. Thanks to that, the project is always moving in the direction that the community chooses, and the investors have their voices heard regarding their preferences.
Expanding to Save: How New Locations Will Lower Electricity Costs
With the current electricity price of $0.045 / kWh, Infinity Hash miners are already very competitive. However, achieving an even lower electricity price would improve profit margins for share holders. With this aim, Infinity hash is expanding its operation to a few new geographical locations with very low electricity prices. These are the main future expansions for Infinity Hash:
With the addition of all these new locations, the average electricity cost of the entire mining operation will trend down. This is an estimate of what this value will be over the next few years:
As with any other Bitcoin mining investment, lower electricity prices boost profit margins by cutting operating costs without diminishing revenue. With Infinity Hash’s share system, these benefits are amplified further. Higher profits result in higher reinvestment amounts, which accelerate the growth rate of the hashrate per share and general profitability of the project. Moreover, distributing the mining power through several locations helps diversify risk, as it becomes very unlikely that every location experiences a downtime simultaneously.
Infinity Hash: Community-Driven Mining Success
To summarise, Infinity Hash provides a community-based approach to Bitcoin mining, providing daily rewards, flexible withdrawals, and a reinvestment strategy to support long-term growth. The project’s emphasis on transparency and community input offers investors a straightforward way to participate in Bitcoin mining. Finally, with their plans to expand to locations with lower electricity costs, Infinity Hash will significantly enhance profit margins while maintaining its operation in the long run thanks to its reinvestment strategy.
