Why is Cloud Rush mining for Filecoin tokens?
Cloud Rush has elected to mine for Filecoin tokens because we believe that Filecoin’s business plan of creating new decentralized data storage is the best use of mining resources. Many other digital currencies are built to exploit computer processing speeds, which adds very little to today’s society.
How Bitcoin creates coins
Bitcoin holds a lottery every 10 minutes or so, where mining rigs around the world race to be the first to solve a complex math problem. The miner who is first to solve the problem is rewarded with a Proof of Work (PoW) which enables them to mine for a new bitcoin.
The computers required to mine Bitcoin are enormous, specialized, and often owned by businesses or large numbers of individuals pooling their resources. News reports say that bitcoin mining in 2019 required 12 trillion times more computing power to mine one bitcoin than it did when Bitcoin was first released in 2009.
A massive amount of energy is required to power these extremely powerful computers. Bitcoin mining accounts for 0.4% of the world’s energy consumption, using more electricity annually than Finland or Belgium, according to the Cambridge Bitcoin Electricity Consumption index.1 Energy consumption is one of several reasons why China is shutting down all digital currency mining within their borders this year.
How does Filecoin work?
Cloud Rush mines for Filecoin tokens because the network rewards miners for creating new decentralized data storage. The new data storage created by the Filecoin Network makes data storage safer, data easier to retrieve, and the decentralized network harder to censor.
Filecoin mining machines use standard hard-drive storage and requires 60 to 70% less power than standard mining equipment. Filecoin is built to improve computing for the long term.
The Filecoin Network has a Proof-of-Spacetime (PoSt) process that requires their data storage providers to validate every 24-hours that they are properly maintaining their stored data. Clients who decide to store data using the Filecoin Network can view their storage provider’s history to confirm that their files have been stored correctly, even if the client is offline at the time.
The cost to create new Filecoin tokens is a fraction of the current market value of coins/tokens.
Low out-of-pocket costs; excellent profits!
A 16T (terabyte) machine plan from Cloud Rush has an initial out-of-pocket cost1 of only $3,319. (A token pledge [priced at 5FIL/T as of 10/18/21] is also required at the commencement of mining; please contact Cloud Rush for details.) The estimated mining cost-per-token is $21.50 or less. On October 18, 2021, Filecoin was available for purchase for $62.64. You can see where this is going.
1 Out of pocket costs are defined as machine buy-in price and the first year’s hosting fee. The remainder of the term’s hosting fees will be due yearly upon the anniversary date of the contract.
Disclaimer: This blog is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.