Want to earn 1427.02 ETH? Oddo Cash may be a valid solution for those seeking to get into mining
Kamil works from his New York home as a blockchain miner. The odds of him mining alone and finding a new block are very slim, so he joins a mining pool, where miners band together and share the profits.
Unless you really, really love mining, Kamil’s life might not be the sort you want.
First there’s the expense.
- An entry-level capable processor costs around $100. The AMD Ryzen Threadripper 1950X, said to be the absolute best mining CPU, is $719 on Amazon. Decent-quality cryptocurrency mining computers for beginners start from around $700. The higher your quality, the more BItcoins you can mine. A quality computer, the AntMiner S9 (around $1,598) mines around 0.0018 bitcoin in a day. As the mathematical problems get progressively harder, miners need to keep upgrading their rigs.
- Kamil has to invest in high-end graphics cards (since the GPUs are more efficient than CPUs for mining application). The Advanced Micro Devices and Nvidia cards that are the most powerful cost between $1,200 to $1,400. Nivida says its PC cards will skyrocket to the end of 2018. (Maybe beyond that, too).
- Third, there’s the electricity. Making loads of incorrect guesses uses a lot of energy. Blockchain.info, which tracks Bitcoin-related data, calculates that miners use around 1,005.59 megawatt hours of energy per day, which – according to Bloomberg – costs you $150,000 a day. According to the South China Morning Post, you’d want to run the computer round-the-clock for 556 days to mine a single bitcoin. If you live in a city like New York, expect to pay around $420,000 to $465,000 a month in energy costs for the chance to mine a single Bitcoin (Although, of course, Kamil could move to China where energy costs are $0.13 per kilowatt-hour). Of course, most miners pay extra for cooling; all that energy use throws off a lot of heat.
- Miscellaneous costs: Miners pay, too, for transactions and for mining pool membership. Costs range from one to three percent of their profit.
How much do I earn from mining?
Sorry to say, few people earn anything if at all today. The New York-based research firm Fundstrat says the price of Bitcoin is nearing a break-even of 1.0x, meaning the reward for mining a bitcoin equals the total cost. Worse yet, the computational difficulty in bitcoin mining increases by about seven percent every 13 days on average, so miners can expect to operate at a loss in the near future.
Bitcoin cost slides up and down. Small wonder then that experts like Tom Lee, managing partner at Fundstrat Global Advisors, suggest you buy BTC rather than mine it.
As of April, 21, 2018, Kamil would have to make to $8,038 to break even, according to Lee. Kamil would also have to learn the subtleties of mining to succeed. And he’d have to devote hours of time to calculating its algorithms.
Kamil could turn to cloud mining, where he could either lease mining hardware hosted by the provider, or – most popular – lease hashing power that is unleashed by the provider’s own computers. Cloud mining removes your energy, equipment and maintenance costs, although you’d need a high-quality home computer to communicate. On the other hand, you’re relying on these cloud companies which may deceive you; their operations are opaque and 99% of cloud mining companies are scams. They may cease operating at any moment (if the bitcoin price is too low), and a credible company like Genesis Mining currently charges $0.00028 per mining power (GHS) – which means lower profits for you.
Crypto mining, in short, is a hobby that Joseph Wang, a cryptocurrency investor and adviser in Hong Kong, says is not worth it for an “ordinary” person.
On the other side of the ocean, Riyadh in Saudi Arabia joined a giant mining enterprise, which uses custom encryption processors and does nothing but run its computers all day, every day, to mine for bitcoin. The company gives Riyadh definite crypto in days, but Riyadh’s membership costs are exorbitant.
Company expenses include processors, heatsinks, fans, water blocks, and support hardware (such as enclosures, power supplies and mechanical parts). These giant mining enterprises, made of blocks of 10MW or more, also need to pay for their operating teams and suppliers.There are maintenance costs, fixing costs and constant upgrades and purchases because of the decreasing lifespan of mining hardware, growing competition, and a steep increase in network difficulty. Even then, their sophisticated equipment often breaks, so there are delays in the processing.
Worst of all, given the bitcoin zigzagging madness, yoru return is uncertain, to say the least.
Two months ago, a Russian-based blockchain company came out with an idea that resolves these problems.
Is mining too expensive?
OddoCash has cutting-edge equipment. It bears the technical and maintenance costs. It shoulders your energy costs. It uses only the most powerful cards, bears its own transaction costs, and so forth. Your only investment? 0.01 ETH ($660).
Is this a scam (like cloud mining)?
Oddo is open source so it’s transparent. You see all Odoo activity as it occurs because it is on blockchain.
Do I get definite income?
Oh yes, OddoCash outlines a schedule of weekly if not daily pay. Its website says its mine harvests thousands of dollars a day.
So how does Oddo Cash work or what are the costs?
Oddo calculates your profit on the algorithm of: Your ETH investment +Number of invited partners + Activity of the invited + number of structural levels (pyramid).
Breaking it down:
- You pay Oddo 0.01 ETH
- You invite others to use Oddo
- You encourage your invited participants to regularly use Oddo
- You encourage these invited participants to invite others to use the platform.
Oddo totals the outcomes of these factors and rewards you accordingly. Oddo uses ETH rather than Bitcoin, because of the processing speed of Ethereum (20-30 seconds), its smart contracts and powerful block technology.
Jim invested 2.9 ETH. He invited 15 friends to join Oddo, who, in turn, invited five others who spread on the invitation to their firends, until Jim had seven layers of people who had directly and indirectly joined Oddo because of him. Oddo totals each of these factors, paying Jim 1427.02 ETH.
Jim also earns bonuses from Oddo’s trading activities, where ETH mined from Oddo’s platform is traded on a crypto-exchange and the proceeds distributed to Oddo users according to their contributions.
For people who want to make money through mining, Oddo, symbolically called “the time of the first”, could be their last and best hope.
Find Oddo at oddocash.com.