Coinmine One Crypto Mining Device’s Plug in Play Ease of Use and Price has Mass-Market Adoption Appeal
Cryptocurrency mining has been a very secluded territory of the industry. The devices themselves are expensive, and the high-power usage makes it difficult to take on without the right resources. However, Coinmine is looking to change all of that with a new device that makes it easier to take advantage at home.
The new product is called Coinmine One, and it is the first product to come from the startup. This hardware device is primarily meant for enthusiasts that want to have the option of mining cryptocurrency, but without the need to have a whole new skill set to understand it.
Both Coinbase Ventures and Arrington Capital are were amongst the investors in this effort. Though the total amount contributed was not listed, there were also individual investors, like Balaji Srinivasan (Coinbase CTO), Anthony Pompliano (Morgan Creek partner), and Ryan Hoover (Product Hunt co-founder.”
As the Coinmine One is prepared for public use, it will be priced at $799 retail, though buyers should not expect the product to ship before mid-December this year. So far, Coinmine has not released an official date, and has not even predicted the sales that they hope for. However, Farbood Nivi, the CEO of Coinmine, noted that this product should be appealing to a massive audience. Going further, Nivi commented, “We think there’s a market for millions, if not tens of millions.”
Chapter One Ventures decided to back the efforts of Coinmine One so that there will be more participation from the everyday consumer. Jeff Morris, Jr., the founder of Chapter One Ventures, said to CoinDesk, “Coinmine will democratize access to becoming a miner in a fun and approachable way that almost feels like playing a video game.”
When the user gets their device, they will be able to start mining right away. Without setting up anything extra, the product can mine ETH (29 Mh/sec), XMR (900 h/sec), ZEC (320 h/sec), and Ether Classic. The company already has updates planned for this year, which could allow them to run a stake for Filecoin, Dfinity, or Bitcoin lightning nodes.
The Block recently reported on this new product, crediting the functioning of the device to MineOS, the proprietary operating system for Coinmine.
They added, “MineOS enables Coinmine One to run different mining algorithms on one device and receive updates directly from Coinmine. That is to say, if a new crypto network comes online, owners of Coinmine One need not throw away their old devices and buy a new one that supports this network, they only have to wait until Coinmine updates their software. The ability to mine a new crypto network when it is released gives retail users access to new cryptocurrencies before they are even traded on exchanges.”
The device itself does not take much power, only eliciting 120 watts, which is about what consumers use with a PlayStation 3 when they are actively playing a game. With low noise output, it will not disturb whatever else is going on in the room. Considering the sleek design, it should fit in with the rest of the user’s electronics. However, the most important aspect of the device is how user-friendly it is. As the individual earns, they can track their earnings and manage them with the use of a smartphone app.
If all of the theories around this product are accurate, then consumers will probably love it. However, the mining hobbyists already in the market will not likely be on the same page. The hash rate is much lower than the other miners on the market, and the price for that rate is higher, which could be due to all of the technology that the newbies will not have to learn.
Still, the concerns that arise from these hobbyists just show that there is a bigger point getting missed, according to Nivi. Even if the mining devices work less, then the average user would still be unable to mine and will not have the option of updating then.
Realistically, Nivi believes that there are people that want to mine, and presently cannot, which is what Coinmine is built on.
He commented, “The one thing that’s consistent in crypto is that it’s constantly changing and evolving. Coinmine is the only solution that makes it possible to continually be a part of that.”
It is important to remember that the history of selling home miners has not gone over well. Many mining product creators, like Butterfly Labs, Alpha Technology, and GAW Miners, could not maintain performance that lasted, or were ultimately exposed as fraud. Other companies found that the continued production of the hardware necessary simply was not able to withstand and survive the long-term use.
One of the worst cases of home miners happened when Josh Garza, owner of GAW Miners, was found guilty of wire fraud. When the company first began, it resold important mining products, though they expanded to hosting miners and “virtual miners,” though the latter ended up classified as securities.
Bitmain has been the main name in the mining industry, which can be primarily credited to the cheap power, economical price, and overall operation. The company still makes budget miners that the everyday consumer can afford, though they are fairly loud.
With just a look at any of the predecessors, even the inexperienced eye can see that Coinmine One is different from what the industry has brought forth before now. ASIC miners are bulky and unattractive, along with incredibly expensive and noisy. As Nivi puts it, “If you go and buy these crypto devices online, they should like there is a vacuum cleaner running constantly.” Coinmine One is barely noticeable, energy efficient, and easier for the newest miners to use.
There is still one concern among miners – is this device worth bringing in? With so many people able to mine tokens, the profit could become less lucrative, though Nivi plans to counteract this issue with new tokens. Furthermore, he believes that the added miners in the crypto space will ultimately add value.
Nivi said, “While more people mining a coin can decrease the amount of coins you earn, it also increases the value of the network.” He added, “If you’re doing this from home, it’s bad advice to buy and sell. You really should hold. You’re holding and waiting for it to 10X, 100X or 1000X.”