What Is Cloud Mining In 2021? The GoMining project does its best to use renewable energy sources to provide electricity for the operation of data centers
By Julian Lim •
Opinions expressed by Entrepreneur contributors are their own.
You're reading Entrepreneur India, an international franchise of Entrepreneur Media.
Lately, the concept of "cloud mining" has been strongly discredited. The words "cloud mining" often hide pyramids and scam projects that, in fact, do nothing but a website and advertising. And this is not only a Russian problem. The crypto industry is booming, investments in cryptocurrencies are hitting all profitability indicators. It resulted that the demand for mining has skyrocketed. But apart from this, there are also really working projects.
Mining is gaining momentum, more and more people strive to get engaged in it, which results in some difficulties - miners started facing troubles with power consumption while the prices for hardware soared. The GoMining project aims to remove all these troubles and come up with an exclusive solution for miners.
GoMining has issued its native token GMT backed by computing power. The token enables its holders to mine Bitcoin every day, and besides, GMT acts as an asset. To mine cryptocurrency, token holders don't have to buy mining equipment contrary to traditional mining. Having GMT tokens, they have no time limits in mining.
The developers of the project add equipment and computing power every week, increasing token supply. Then 20-90 per cent of those new tokens are burned, while the released capacity is distributed among other tokens. It increases the supply capacity of a GMT, thus, growing miners' income.
Eco-friendliness Mining
Critics have long said that mining computers run almost non-stop and consume a lot of electricity, generated mainly by burning coal.
Tesla temporarily suspended the option to buy electric cars with bitcoin one and a half month after opening this payment method. The company explained this by the rapid growth of fossil fuels used in Bitcoin mining. At the same time, Tesla owns Bitcoins worth $2.5 billion, the car manufacturer has promised not to sell them, though.
Elon Musk intends to resume operations with bitcoins when mining "switches to sustainable energy consumption", in the meantime, he is considering other cryptocurrencies.
Musk cited data from researchers at the University of Cambridge, informing about a sharply increasing electricity consumption for mining Bitcoin mining over the past year. Cryptocurrency critics have long feared its environmental impact, as CNBC mentions.
In a statement, Tesla points out that coal has the highest rates of emission compared with any other fuel. According to the Cambridge Bitcoin Electricity Consumption Index, this cryptocurrency uses even more energy than some countries, such as Sweden and Malaysia.
The only way to get Bitcoin is mining. Users run farm computers that constantly solve complex math tasks to create new blocks in the blockchain. As a reward, miners receive bitcoins. Computers run almost non-stop, consuming a lot of electricity.
The GoMining project does its best to use renewable energy sources to provide electricity for the operation of data centers. That is, the company mainly uses hydroelectric power plants and wind turbines. However, over time, they plan to switch to sustainable energy consumption to reduce environmental damage.
Recently GMT has signed a contract with the famous mixed martial arts fighter, Khabib Nurmagomedov, to become a GMT token ambassador. Khabib announced cooperation with GoMining at the Future Innovation Summit 2021 in Dubai. Such a partnership is supposed to help the project gain publicity, trust, which will contribute to its further development and growth, and besides, bring more understanding to cryptocurrencies and blockchain technology as a whole.
GoMining aims to increase the GMT rate and so miners' income several times. The company's primary objective is to provide 20% of the world's mining, and it seems to be quite possible given the company's development path.
Note: Investment in cryptocurrency is subject to risk and readers should do their own due diligence. Entrepreneur Media does not endorse any such investment.
