As Cryptocurrencies have become more popular, the profit margin on mining them has dramatically shrunk. The level of difficulty has increased exponentially which in turn incurs more costs.
However, the profit margins can be increased from significantly lowering the expense of electricity to mine, as well as cutting out other side expenses. But, it is not always that easy to directly profit from mining done on your own accord.
There does seem to be a way though for those interested in mining to get in on this facet of cryptocurrency. It comes from Ice Rock Mining who have an interesting approach to minting new cryptocurrency coins.
Taking it Underground
Ice Rock Mining is using an old Soviet Bunker, situated in Kazakhstan, to set up a large mining operation that it believes will be able to efficiently mint different cryptocurrencies at a cheaper rate.
The advantage of taking the cryptomining operation underground, into this bunker, is that the usual expenses, such as mining, cooling, and even rent and maintenance of the mining housing are dramatically lowered, and in some cases negated.
Ice Rock Mining have procured the bunker and as such do not have any overheads when it comes to rent, and because the makeup of the bunker is essentially just rock, there is very little maintenance.
Ice Rock Mining also believe they have the perfect ecosystem for their 4,600 ASIC rigs in the tunnels of the mine as the temperature remains constant at 12 degrees throughout the year, helping the mining operation stay cool and efficient.
They are also situated alongside a hydroelectric power source which provides them with some of the cheapest electricity around. The state they are paying $0.03 per/kWh of power.
So, with all these cost-cutting methods in place, what does it mean for those wanting to mine their own cryptocurrency who are not in possession of a Soviet-style bunker?
Open for Business
Ice Rock Mining is looking to combine a few facets of cryptocurrency in order to enact a business. They see that there is the opportunity to share their mining space with others who also want to profit on their large margins. They are creating an ICO to make this happen.
Ice Rock Mining allows for investors, as well as miners, to take part in their ICO as people can either buy their tokens – ROCK tokens – in the style of normal cryptocurrencies, holding onto them as they grow in value.
However, they also offer mining packages which will allow individuals who cannot profit in mining take advantage of their set up through cloud mining. Essentially, people will be able to buy a package that suits them where they own space in the mine to mint different coins.
Making it Profitable Again
Because mining Bitcoin, especially, is hardly profitable for casual miners at home, Ice Rock Mining is trying to offer an alternative method of mining, through cloud mining, but additionally, they hope to make cloud mining profitable as they have managed to increase their margins through cost-cutting measures.
What Ice Rock Mining is accomplishing is seemingly taking the costs of mining, and mitigating them through the use of an ideal underground space. Electricity and cooling costs are extremely low and rent is negated as they own the entire cave system. By allowing the investor to be a part of this, the margins are naturally much larger than competitive cloud mining operations.
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