Browser Based Coinhive Mines About $250,000 Worth of Monero (XMR) Coins Monthly
Mining is the foundation of all blockchain-based digital coins. Altcoin, Monero, allows miners to use standard hardware to mine XMR. This is in contrast with Bitcoin that only enables mining using special mining machines called Application Specific Integrated Circuits or ASICs. Monero utilizes browser-based mining model, unlike bitcoin.
According to the report, when the block rewards of the mined blocks are summed up over a four-week period, Coinhive is said to have generated about 1,271. Computing this amount with $200 market value of one XMR at the time amounts to a quarter of a million. This amount could be more or less depending on the price of one XMR coin considering that the coin is also as volatile as other cryptocurrencies. One XMR was at $400 at the beginning of this year.
With the current exchange rate, Coinhive mines XMR worth approximately $250,000 and distributes 70% of it to its users. Even after giving out such a huge chunk, the site still manages to meet its operational costs thus remaining profitable.
So Where Do These Coins End Up?
The report states that only about 10 users control Coinhive’s link forwarding service. These users in most cases redirect the coins to filesharing sites and streaming videos. While a lot of these links can be resolved in a few minutes, there those that need millions of computational power or hashes to get computed which is not viable.
Is It Ok To Buy Monero Now?
Well, there isn’t a clear answer to this considering the coin’s volatility. The report says that the link redirection monetization can be compared to short link services, delaying that redirection while at the same time serving advertisements and then giving commissions to those who created the link. This is what is happening with Coinhive as the one who creates the short link gets a portion of the block reward mined by the users who click on the short links.