Gominer Business Solution Review, Legit or Scam?
Most cloud mining, if not all, has been linked to scam and ponzhi schemes. Everyone wants to earn Bitcoin since its price has been surging drastically. It’s a hype that attracts a lot of attention from people with good and bad intention. A simple google search with “cloud mining” will give you lots of bad reviews about a number of cloud mining companies with little positive feedback. So is cloud mining really a scam or not? If it’s not, then why do companies still engage with such ineffective business model and how do they profit from it? I hope to enlighten even if a few people on the cloud mining industry and its impact to the entire Bitcoin community.
2. Cloud Mining in nutshell
Mining is one of the best way to earn Bitcoin, the only problem is its expensive equipment and technical expertise needed to configure the mining rigs. It’s not like assembling a gaming cpu where you can simply learn it from watching youtube tutorials. The entire process itself takes time and technical skills. This is where cloud mining services comes in. People who have the skills, time, assets and experience join together to start mining in bulk. Mining with a single GPU or ASIC is very inefficient. The cost required to have a decent ROI is no joke. Most miner will learn this the hard way. Now, with a number of ASIC in hand, why do mining companies still need to lease their space to other people? The reason is because of bitcoin volatility. I’ll explain a little about cloud mining profitability to explain further.
3. Profitability analysis
a. Win – Win , Lose Lose Paradigm
Mining is directly affected by bitcoin price. When bitcoin price goes up, so does the profit of mining companies, and if goes down, well mining companies can lose a lot even to the point of bankruptcy. This is the win-win, lose-lose paradigm model of mining companies. The business life cycle of mining companies is dependent to the bitcoin price. This is the main reason why lots of mining companies are considered a scam. They tend to pay high when bitcoin price is at its peak and pay low to none when its price is down.
4. The GoMiner solution
The old business model of mining companies as explained is very inefficient. If not change, mining companies will only diminish and its image will only scar badly the entire industry. New companies that are entering the industry had already address the issue and improve the business model. The new business model doesn’t rely directly on bitcoin price and can profit through other means.
An example of a company that already address the issue and came up with a long term solution is an upcoming ICO named Gominer. They saw that relying on a single service is what leads to the downfall of mining companies. They position themselves not just as a mining service but also a token based company that can earn through other way.
- ASIC Sale
- Gominer Application
- GMX Pool
They answered the bitcoin volatility problem by innovating their very own mining rigs to mine not just a single algorithm but with multiple algorithm. This innovative solution can prevent mining companies to go bankrupt when bitcoin price is down. They can minimize their lost through their multiple algorithm. By mining multiple profitable algorithm, their company doesn’t need to rely on bitcoin alone and can earn through the other cryptocurrency which is profitable at that time.
The business model that Gominer is introducing should also be considered by other mining companies for the entire mining industry to scape its negative image of being a scam since the entire mining industry can affects the bitcoin community.
Cloud mining companies are already considered scam by lot of people. The bad image it portraits can severely influence new investors for bitcoin and other cryptocurrency. They have a responsibility to fix this misconception by updating their inefficient business model.