Beginners to cryptocurrencies may wonder – where do cryptocurrencies come from?
They come from the mining process.
Mining is the process in which cryptocurrencies or tokens are generated. Because cryptocurrencies are decentralized which means there are not central authorities like banks to control and circulate the supply, there has to some sort of coin generating procedure that works for this system.
Instead of issuing currencies, mining is carried out by miners which are basically computer systems that use software to solve mathematical equations which verify transactions in the blockchain.
As an incentive to miners for their work, they are rewarded in the form of cryptocurrencies which is essentially how cryptocurrencies are generated.
If a miner mines on the bitcoin blockchain, they receive BTC. If they mine Ethereum, they receive ETH; the same logic applies to many popular cryptocurrencies out there on the market currently.
There is, however, a major downside to mining.
The mining process itself is incredibly energy-intensive as millions of processors worldwide need to be cooled in addition to running GPUs (graphics processing units) to actually mine cryptocurrencies.
To put it in perspective, it is well known that the combined amount of energy used in mining cryptocurrencies like Bitcoin and Ethereum is more than enough to power countries like Iceland or Jordan.
A study in the Netherlands discovered that if the bitcoin network continues expanding as it is to 2020, it could use up more than 14 gigawatts of electricity which is the same amount of power generated by the whole of Denmark.
This does not consider the fact that mining systems have to be monitored 24/7 under extremely high load which means system failures are common.
The silver lining, however, is that miners are starting to look for energy-efficient alternatives which work just as well as current mining standards.
HydroMiner is a cryptocurrency mining startup that plans to use green energy drawn from hydropower plants in the Alpine region of Europe to mine popular cryptocurrencies.
Their goal is to have the industry’s lowest carbon footprint while at the same time maintain efficient results in the mining process.
HydroMiner also plans to expand and acquire even more hydro plants in the future so that smaller investors can invest in cryptocurrency mining and profit.
Unlike other startups, the HydroMiner project is already launched for some time now with the operational bases working perfectly.
How does the mining process work exactly?
The HydroMiner team mines cryptocurrencies in the Austrian Alps with the help of energy directly drawn from hydropower stations in the area.
The unique aspect of HydroMiner is that GPUs are placed directly inside sea freight containers. These containers are put next to hydropower stations which then power the mining rigs which allows HydroMiner’s mining rigs to avoid high power grid costs.
With hydropower energy, HydroMiner is able to achieve an all-time low of 4 cents per kWh during the mining process making HydroMiner a serious competitor to other mining firms in the industry.
The benefits of HydroMiner do not only come in terms of profitability; the platform also uses green energy almost exclusively and leaves little to zero carbon footprint, a benefit that will reap rewards for humans today as well as generations down the line.
Like all businesses, HydroMiner needs to constantly be on top of their game. This is reflected in the startup’s plan to always upgrade the facilities so that profit levels stay high and hardware is utilized more efficiently.
Since HydroMiner is all about being efficient, used or old equipment will be resold on the official website to interested individuals.
Transparency is also a strong feature of the HydroMiner platform.
They plan to organize tours of the facilities on a regular basis. Interested individuals are more than welcome to request a tour on the official website which also acts as a tracker to check real-time mining proceeds from a watt of power.
Hydropower is usually regarded as the most effective and cheapest renewable energy resource.
Not only is it environmental-friendly and natural, hydropower also allows HydroMiner to manage their resources sustainably while producing low levels of emission.
To put the cherry on the top, hydropower is also profitable compared to other mining power sources.
Financial-wise, the hydropower stations used in the business are rented by individuals who fully own the stations. Expensive rental costs is not a worry as hydropower stations In Austria are heavily subsidized.
With companies in the same industry that are using other energy sources like solar power for mining, one starts to wonder: is hydropower really the better solution for cryptocurrency mining?
The answer is YES.
Aside from powering the rigs, water from the hydropower stations is also used to cool down the mining equipment which reduces the overall required energy and costs of the business.
HydroMiner has also built an exciting partnership with the 3M Novec 4 Team to develop its own dedicated GPU miner cooling technology which will require almost 90% less space and 20% less energy than current standards.
3M’s signature liquid cooling will also enable HydroMiner’s mining rigs to handle even the most demanding mining software on GPUs, as well as CPUs, without affecting the quality and lifespan of the hardware in use.
HydroMiner have launched their token sale for the H2O token.
What sets the HydroMiner token sale apart from others is that 80% of the mining net profits are paid monthly to all token holders.
The remaining 20% will be split equally with half of the mining net profits redistributed to the team while the other 10% of proceeds are used to buy back tokens at the token sale price on a constant monthly basis.
Each H2O token can also be exchanged for 5 kWh of mining power on the platform for a specific time.
The resulting net mining proceeds are then paid out instantly to the user’s HydroMiner platform wallet every day.
Readers should note that net proceeds in HydroMiner’s case are the total mining proceeds deducted by the operational expenses and hardware costs.
Token name: H2O
Token base: Ethereum (ERC-20 compliant)
Token supply: 100,000,000 (25,000,000 on sale during the public token sale)
Token sale duration: 18th of October, 2017 to the 15th of November, 2017 (ICO is currently LIVE)
Token sale target: 250,000 ETH
Token exchange rate: 1 ETH = 100 H2O