The Gamification of Bitcoin Mining: GoMining Opens the Industry to Retail Investors

The 2024 Bitcoin halving event reduced the block reward to 3.125 Bitcoin (BTC). As a result, the supply of new BTC slowed down, and the profitability of mining companies plummeted.

The 2024 Bitcoin halving event saw the block reward decrease to 3.125 Bitcoin (BTC). This event, coupled with the rising difficulty of mining Bitcoin, led to a decline in the profitability of mining companies.

In a new report, Cointelegraph Research examines the current state of the mining ecosystem, covering its economic conditions, technical developments and more. The report also explores new approaches to making Bitcoin mining accessible to retail investors, such as GoMining's gamified Bitcoin mining using non-fungible tokens (NFTs).

Download a full version of the report for free here

Bitcoin mining hashrate and hardware performance

The total Bitcoin hashrate has historically been volatile but follows an exponential growth trend. Significant deviations from this trend occur when miners are forced to upgrade to newer and more efficient hardware before each halving event and turn off older mining rigs after a halving event.

Although the total Bitcoin hashrate is increasing exponentially, the performance of individual mining rigs is advancing more slowly.

For example, the Antminer S19j Pro, which was released in July 2021, currently contributes 34.3% to the total network hashrate and has a maximum hashrate of 100 terahashes per second (TH/s). The latest Antminer S21 Pro, which was unveiled in March 2024, has a hashrate of 234 TH/s.

Energy efficiency, another key characteristic of mining hardware, has improved from 29.5 joules per terahash (J/TH) on the S19j Pro to 15.0 J/TH on the S21 Pro. However, an Antminer S21 Pro costs over $6,000, which makes it inaccessible to most retail investors.

GoMining's gamified approach to Bitcoin mining

Given the prohibitively high entry barriers to traditional mining in terms of capital costs and technical expertise, retail investors have to look for alternatives. One option is cloud mining, which allows individuals to rent processing power from remote servers and use it to mine Bitcoin.

GoMining takes a different approach by allowing its users to not rent but perpetually own a certain amount of Bitcoin hashrate. The company tokenizes hashrate produced by miners in its data centers and mints it as NFTs with varying energy efficiency and power characteristics.

Since these NFTs are tradeable and transferable, the concept is called Liquid Bitcoin Hashrate.

The GoMining project has a native Gomining Token (GOMINING) that powers a deflationary mechanism and a range of use cases, all of which are covered in depth in Cointelegraph's report.

Download a full version of the report for free here

GoMining offers two modes to earn rewards from NFTs: solo and pool mining. The solo mode provides guaranteed results and is based on the characteristics of the NFT used for mining. The pool mode simulates real-world mining practices and allows users to launch their own pool or join an existing one to compete for block rewards. The pools are internal to GoMining and rely on a collaborative effort, potentially allowing users to earn more than in the solo mining mode.

This article does not contain investment advice or recommendations. Every investment and trading move carries a risk, and readers should conduct their own research when making a decision.

Cointelegraph does not endorse the content of this article or any product mentioned and advises readers to carry out their own research before taking any actions or making any investments and to consider the risks involved.

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