Miner One Review (MiO)

Before we get into the details about how you can start mining Miner One, lets talk about how this platform is different than others and whether or not it is worth using to mine crypto. And if it is, how profitable will it be for you.

Cryptocurrencies have gained their popularity due to the recent rise of Bitcoin, especially when it started trading above $50,000 for the first time in its history. And not just that, it also reached a market cap of $1 trillion which is a HUGE milestone for any entity in the world. Only a few companies have reached that $1 trillion valuation/market cap.

Most people aren’t aware of Miner One except the ones that are into cryptocurrencies, crypto mining to be specific.

Miner One’s approach to mining is different compared to other cryptocurrencies out there. The platform has structured mining in a way that the participants and the management benefit from the mining. Meaning, both parties have a stake in the platform and they work toward the success of it.

Is Miner One Different? If So, How?

Most crypto miners out there have to invest thousands of dollars in equipment and have to run those machines 24/7 to make mining profitable for them. Now that ASICs have started taking over, the overall formula is still the same – invest a decent amount of money into ASICs and run them 24/7.

This basically meant that people who have a lot of upfront cash to invest can make it work for them.

With Miner One, you don’t have to buy any hardware. They offer a cloud mining service.

What Is Cloud Mining?

Cloud mining is a service through which you can mine cryptocurrency via a remote data center using shared processing power.

This is great for people who are not tech-savvy or for people who just don’t want to deal with the hassle of high electricity costs, heat, making sure everything is running properly, etc. Because lets be honest, if you are enthusiastic about mining crypto, you are already doing that.

But for the majority of the people who want to invest into crypto but don’t have the freedom to ONLY focus on mining, we want a way to mine cryptocurrencies that doesn’t take a lot of maintenance or time on our end.

Miner One caters to people like that.

All you have to do is register and buy a mining contract and choose a purpose, which basically means which cryptocurrency you would like to mine.

Once that is done, you will have to pay Miner One for the hashing power. And that’s it.

Is It Better To Use Miner One Than Mining Crypto Yourself?

Cloud mining services like Miner One have created a new niche in which they manage the mining hardware on behalf of the community. The difference between other cloud mining services and Miner One is that their accounting is much more transparent than others.

They prioritize their community over profits. Which means, if their community makes money, the founders will make money. If the community loses money, the founders will lose money too.

Think of it as a crowdsourced mining investment. Once you pay for the fixed-term agreement, which usually is for a one year duration minimum, the company starts mining on your behalf and then pay you the profits through MIO tokens.

Once the one year agreement is up, your investment is gone and you will have to buy a new agreement to continue mining.

A lot of people have talked about the high management fees of cloud mining companies. But it does make sense why those fees are being charged if you think about it.

They are buying the hardware on your behalf and making sure that it is stored in a safe place where there is consistent electric supply, little to no risk of natural disasters while also making sure that the electricity costs are affordable and the hardware doesn’t get too hot. In most cases that means more ventilation and cooling.

All the things that you and I would hate to manage ourselves if we were to buy all that hardware ourselves.

How Does This Work?

Most people might not have considered this one thing – whenever you are mining a cryptocurrency, there is a cushion effect that you get to take advantage of.

Lets say that the bitcoin price is trading between USD 5000 to USD 30,000. Your initial investment in Miner One should be 2 to 5 times of its initial value in about 3 years of time. But if you bought bitcoin outright, the value of your investment would fluctuate depending on the trading price of BTC. It is possible that your investment could go up, down or remain stable.

Worst case scenario, if BTC price drops significantly to USD 100 to USD 1000, you investment would take a massive hit. But if you were mining BTC instead, you would still be able to generate 2.57 to 4.63 BTC even in the downturn which would give you a return of 23 to 32 percent.

Those kinds of returns are unheard of especially when you get to make them during a downturn. And lets be honest, with BTC, there’s always a downturn every year and we also see a new high every year.

So, if you are someone that doesn’t like seeing too much volatility with your investments, mining may be better than a direct investment into cryptocurrencies.

Challenges Of Cloud Mining Companies Like Miner One

Obviously this isn’t all sunshine and rainbows. There are some challenges that you will face when investing in a cloud mining company.

Electricity costs and the mining difficulty is a big one. Electricity costs are easy to predict because they have been stable for the most part. But the mining difficulty is hard to predict.

If we assume that BTC will trade between USD 5000 to USD 30,000 and based on the current electricity costs of where Mine One’s data center is located and the current rate of difficulty, they have the necessary resources to mine USD 2.15 to 4.86 worth of BTC in the next 3 years.

That number could change massively depending on the mining difficulty and if the electricity costs go up or down.

Summing It Up

Miner One is a great initiative and it does look like a good investment because it is community focused, so the founders HAVE to ensure that the community as a whole makes money in order for them to make money. So the incentives of both parties are aligned.

The community members pool their money to build the mining centers and share the output through ETH-based smart contracts.

The good thing about doing things this way is that the management can then negotiate the cost of electricity and does manage to get it at ultra-low industrial rates.

Their first mining center was launched in 2018 and since then they have been growing steadily. Their initial focus was to mine BTC but now they have expanded to mining other cryptocurrencies as well.