Since the release of Bitcoin in 2009, cryptocurrency mining has frequently made headlines in the media. But the industry has seen significant changes over the last decade. While in the early days it was possible for anyone with a computer and enough CPU or high-speed video processor cards to make a tidy profit mining cryptocurrency, specialized hardware and machines, mining groups and cloud-mining services have since risen to the forefront.
RewardExpert sat down with Raoul Andersson, VIP manager at Genesis Mining, to learn more about how the world’s leading hashpower provider is making it easier for everyone to mine their favorite cryptocurrency.
An Early Provider of Cloud-Based Mining
Genesis Mining was founded in 2013 by CEO Marco Streng, a mathematician and early Bitcoin investor. “Back then, there were only two ways into the crypto space,” Andersson explained. “You could purchase coins on the exchanges or get coins through mining them with your computer. Marco wanted to create another crypto access point for everyone, so he decided to start a company that offered a mining service that would enable them to participate in the process.”
Genesis Mining was one of the first cloud-based mining companies in the cryptocurrency industry and has outlived many of its original competitors. With datacenters in Iceland, Sweden and a number of undisclosed locations, Genesis Mining now has over two million users.
Earn Rewards for Confirming Transactions
If you’re not yet well-versed in cryptocurrencies, Andersson explained that they are simply digital currencies based on blockchain technology.
“Blockchain technology is like a huge ledger where data is stored,” he said. “The advantage of storing data there is that you can eliminate many of the problems you usually have in traditional financial markets. For example, if you send money to me by credit card or PayPal or from a bank, we both have to trust that third party. But with blockchain technology, the participants in the network are confirming the transaction. They are confirming that you really sent me the money or vice versa. It basically takes out the middle man.”
Andersson went on to explain that cryptocurrency mining is like playing a guessing game to identify a number. “Every transaction in the network is put on a block and a certain number attached to it. To confirm the transaction, the miners need to guess the number,” he said. “The more hashpower you have, the more guesses you can take per second. That increases your chances to guess the number, confirm the block and get the mining reward.”
Depending on the network you’re mining in, the mining reward may be a Bitcoin, Bitcoin Cash, Litecoin, Dash, Zcash or another cryptocurrency.
A Reputation for Honesty and Integrity
Andersson said that profitable cryptocurrency mining requires a lot of hashpower, which gives cloud-based mining services a big advantage. “It’s just not possible to play the guessing game with your own computer anymore when companies like Genesis Mining have huge mining farms with tens of thousands of computers and ASIC machines,” he explained.
Genesis Mining’s contracts are also superior to home-based operations because of the electricity costs associated with cryptocurrency mining. “You need to put multiple computers together and that often causes a problem with heat and air condition,” Andersson explained. “At Genesis Mining, we’re able to locate our mining operations in places home miners can’t and optimize the setup of our machines.”
While there are other cloud-based mining companies out there, Andersson said Genesis Mining has built a superior reputation for honesty and integrity. “In the early days of cryptocurrency, there were a lot of scams out there,” he noted. “It was easy to say you had mining hardware when you didn’t. We have two public mining facilities that we will open upon request to customers who want to see them. People know that we’re not just claiming we have tens of thousands of machines.”
More Hashpower Available Soon
Andersson said while Genesis Mining doesn’t have a typical user, there are some similarities among their customers. “A lot of people want to get into the cryptocurrency mining process because it’s something new and exciting that isn’t understood by the majority yet,” he explained. “Many of them have a strong technical background because the more technical or computer knowledge you have, the easier it is to understand.”
Genesis Mining’s users can choose two- or five-year Bitcoin mining contracts as well as two-year mining contracts for a variety of other cryptocurrencies including Dash, Ethereum, Litecoin, Monero and Zcash. Each contract involves a one-time purchase and fixed maintenance fee.
“At Genesis Mining, we’ve never sold a single hash that we didn’t have,” Andersson said. “If we don’t have hashpower available, we don’t sell it. This means that right now, all of our contracts have been sold. But we’re in the process of setting up new mining operations and are doing that as quickly as possible.”
Andersson said people interested in Genesis Mining contracts should visit the website and contact customer service to set up an account. “They can start to get a feel for Genesis Mining, and we’ll inform them as soon as new contracts are available,” he added. “From there, it’s happy mining!”