A startup known as Coinmine has recently launched a new user-friendly crypto mining rig called the Coinmine One. The venture is backed by Coinbase and Arrington Ventures. The miner is not powerful enough to mine bitcoin, which will largely be left to Bitmain ASIC miners. However, it is powerful enough to mine Ethereum Classic (ETC), Ether (ETH), Zcash (ZEC), and Monero (XMR). It is very affordable for a mining rig at USD 799 and features automatic updates.
The Coinmine One
The new mining rig uses less electricity than a vacuum cleaner and is much easier to use than existing rigs, marketed as a plug and play device. It has its own OS which will let users add further cryptocurrencies in the future. Thus far, the startup has raised over USD 2 Million from Coinbase and Arrington Ventures. Coinbase CTO Balaji Srinivasan described it as an easy way to make money –
“It’s a pretty cool idea to be able to plug a device into the wall that makes money for you while you sleep. As a purely economic proposition, you’d have to balance the cost of power and the hardware device itself with the cost of the coin or token that you’d be mining. There are so many assets now that there is probably always an arbitrage somewhere.”
The Coinmine CTO Farbood Nivi believes there is a potential for sales in the tens of millions, and it is certainly in a niche market with few competitors, given its price range. It also looks neat, similar to an Xbox, being easily portable, ultra quiet, and with minimal noise output in contrast to the majority of other mining rigs, which are large, clunky, and noisy in comparison. However, Coinmine does take a 5% cut to store the cryptocurrency in their wallets, which many are finding outrageous. It should also be noted that anything marketed as an easy way to make money should be viewed with extreme skepticism.
Is crypto mining worth it?
Like all industries, it is quite possible to make money in altcoin mining. However, it takes patience, skill, and diligence. Slowly mining a cryptocurrency using a miner such as the Coinmine One will most likely generate returns over the long-term, especially cryptocurrencies such as XMR and ZEC whose inherent privacy features are going to be eagerly sought out in the years to come.
However, it is very misleading to assert that it is as simple as plugging in a rig and automatically collecting a cheque. Electricity bills, which vary by region, have to be paid. The company takes a 5% cut, there is an initial investment, and you have to select which coins are a good future investment. It is a dynamic market with changing costs, and everything needs to be taken into account beforehand. In all likelihood, the winners here will be the hardware manufacturers and not the buyers. Finally, the Coinmine One is less cost-effective than the more expensive machines. Its appeal lies solely in its portability, ease of use, small electricity consumption, and low noise levels. On the other hand, these attributes are precisely what people are looking for, and it is the perfect point of entry.
Digital Nomad with an interest in Zen and Blockchain technology.
Law graduate with 3 years experience as a consultant in the capital markets industry and 4 years experience freelancing on UpWork as a Creative Writer.