How NFTs from GoMining are transforming Bitcoin mining

How might Bitcoin mining benefit regular investors now that profit margins have been reduced by half?

 The block reward was decreased to 3.125 Bitcoin in 2024 because of the Bitcoin halving event. As a result, mining companies’ profits fell, and the supply of new Bitcoin slowed down.

Based on the research done by Cointelegraph, let’s examine the present situation of the mining ecosystem, including its technological advancements and economic circumstances. The study also discusses novel strategies for opening up Bitcoin (BTC) mining to regular investors, such as GoMining’s gamified use of non-fungible tokens (NFTs) to facilitate Bitcoin mining.

The Impact of Bitcoin’s Halving on Mining Income

The hash rate of the Bitcoin network has historically been erratic but generally grows exponentially. When miners are required to switch off outdated mining rigs after a halving event and upgrade to newer, more efficient hardware prior to each halving event, there are notable departures from this trend.

While the overall hashrate of Bitcoin is growing at an exponential rate, the performance of individual mining rigs is improving more slowly.

For example, the July 2021-released Antminer S19j Pro has a maximum hash rate of 100 terahashes per second (TH/s) and currently contributes 34.3% of the network hash rate. With its release in March 2024, the most recent Amtminer S21 Pro boasts a hashrate of 234 TH/s.

Another essential feature of mining hardware is energy efficiency, which has increased from 29.5 joules per terahash (J/TH) on the S19j Pro to 15.0 J/TH on the S21 Pro. But at over $6,000, an Antminer S21 Pro is too expensive for the majority of regular investors.

The gamified Bitcoin mining method used by GoMining

Because traditional mining has excessively high entry barriers due to capital expenditures and expertise, retail investors must look for alternatives. One choice is cloud mining, which lets users mine Bitcoin by renting computing power from distant servers.

GoMining takes a different tack by allowing its users to own a particular quantity of Bitcoin hashrate permanently rather than just renting it. GoMining mints non-fungible tokens (NFTs) with variable power and energy efficiency by tokenizing the hashrate generated by miners in the company’s data centers.

The idea behind this is known as Liquid Bitcoin Hashrate since these NFTs are transferable and tradable.

According to Cointelegraph’s report, the GoMining project offers a native Gomining Token (GOMINING) that is supported by a deflationary mechanism and a variety of use cases, including NFT upgrades.

GoMining provides Solo and Pool Mining as two ways to profit from NFTs. Solo mode is dependent on the properties of the NFT that is mined and offers outcomes that are guaranteed. In order to compete for block rewards, users can create their own pool or join one that already exists in the pool mining mode, which simulates real-world mining operations. Because the pools are built within GoMining and depend on teamwork, users may be able to make more money than they would if they mined alone.