Is Coinmine One for you? Mining cryptocurrency is a slow and energetically expensive endeavor, but if you want to get your feet wet with mining, Coinmine One is an easy way to get started.
- The main feature of Coinmine is that it is super easy to use and install. If you are invested in the decentralized-digital coin ethos, then in 3-4 years you may well be turning profit based on the growth of your cryptocurrency holdings.
- Coinmine is not a way to turn a mining profit quickly. With the cost of the Coinmine machine at, $699 USD, and the cost of the energy to run it, you are looking at very low mining yields and profits.
- If you are tech-savvy at all, you stand to earn much more, much faster if you buy an Antminer S17, which can potentially mine 30 times the amount of Bitcoin than Coinmine One can.
A Closer Look
If you are considering spending the better part of $1000 USD to start mining cryptocurrency, then take a closer look at what is involved with mining and with the Coinemine One. The reviews are mixed, but it also depends on your level of technical competence, the capital you have for the investment, and your long-term commitment to cryptocurrency mining.
What is good about the White Box
- Coinmine allows users to mine low difficulty cryptocurrencies with the ability to receive Bitcoin payouts. Bitcoin requires to much hash power to mine for as an independent miner, so you are better off mining other currencies.
- One reason to use Coinmine One over others, or even a DIY model, is that Coinmine designed MineOS to automatically mine the cryptocurrencies that convert to Bitcoin at the highest rate. Which makes exchanging your crypto for Bitcoin potentially more profitable. It is also a straightforward setup, you just plug the box in and sync it with your digital wallet.
- New miners are welcome; the creator of Coinmine sees the product as a great way for individuals to get comfortable mining. With an easy starting point, it may be easier for first-timers to learn how the whole process works, on a much smaller scale.
What the White Box Promises
Founder Farbood Nivi came up with the Coinmine box in 2018, with the goal of making an affordable device, that was easy to use so that newbies could start to mine cryptocurrencies. With Coinmine you can mine cryptocurrencies such as monero, zcash, grin, and ethereum. You also have the option to receive Bitcoin payouts via exchange.
Bitcoin is notoriously expensive to mine, and with the increasing hash difficulty, it is no longer possible to competitively mine from a personal computer, as it was in 2008. In fact, most Bitcoin mining takes place in China and selected American states where energy is available at a low cost.
If you would like to know more about mining cryptocurrency, then check out the following articles on HedgeTrade blog: Is Cryptocurrency Mining Worth It?, The Basics of ASIC Mining and What is Bitcoin Mining?
As another alternative to joining in the crypto-mining, is to join a mining pool. With pools, miners can combine hash power to increase hashing power, and then share the profits. Pools increase the success of cryptocurrency mining because there is more computational power, which is what is necessary to be competitive.
Although the creators of Coinmine have a good idea, as well as a fairly priced product, all things considered, the box does not yield big payouts.
The following compares the stats that were taken from Cryptobriefing‘s trial.
Based on what the creator of Coinmine One, suggests is possible Coinmine One can generate around $15-20/month of bitcoin in USD prices. Which is based on a prediction of 48,000 satoshis per day.
This price is variable, as it depends on the future price of Bitcoin. So if the Bitcoin you hold appreciates, then you will make money. Bitcoin has proven its strength as a cryptocurrency and investment, but it is still very volatile. But keep in mind that Coinmine has nothing to with the valuation of Bitcoin or any other cryptocurrency.
However, based on Crytpobriefing’s 12-day trial of Coinmine, users were able to reach 40,000 Sats (satoshi), which, at the time of this article is just under $4 USD. However, Coinmine is designed to mine around 48,000 Sats a day. Keep in mind that the price of the hardware is not the whole expense, it is the energy that is costs to mine cryptocurrency.
That being the case, once all expenses are considered, you are lucky to break even with Coinmine One.
Note: “Satoshi” is a measurement of how the bits of a Bitcoin is the smallest unit that is recorded on the bitcoin blockchains.
Nivi set out to design a product that was easy to use and affordable to get into. It is possible to build your own device but that not only requires know-how, it will also take at least 20 hours to do so.
To make the comparison of the DIY, Nivi breaks it down like this:
“The time to build and maintain a comparable device with mining and a Bitcoin Lighting Node is about $400 if your time is worth $20/hour and it takes you 20 hours to research and build the hardware and software. The parts for a miner and a Bitcoin Lightning Node could cost you $500 easily. That’s $900, and you still would have to control your DIY device from a command line with a monitor and keyboard instead of an app you can just tap on.”
That means for your money, Coinmine builds you a working product, saves you the time, and makes controlling mining easy. And as an added bonus there is also customer support.
Batteries Not Included
What this little white box has going for it is that it is easy to use, and if you are patient, and your goals are modest then you may be very happy with the product.
Coinmine One does not mine Bitcoin. Instead, it mines altcoins, such as Ethereum, which are then converted to Bitcoin. It is in converting the cryptocurrency that you actually mine into Bitcoin that Coinmine generates the rates they advertise.
Other charges that need to be taken into account are:
- The user charged a 5% fee.
- The user may lose 1-2% in exchange fees as it’s converted.
- As of 2020, there is a 6.5% interest in coins kept in the Coinmine wallet.
Finally, all of the mining profits depend on there being a hot new cryptocurrency to mine that can be efficiently converted to Bitcoin. So, there are a lot of “ifs” involved.
If you are profit-motivated and have the time and interest to DIY properly, then it is possible to build your own. You can purchase and Antminer S17 which has far more capacity and can mine about 30 times the Bitcoin that the Coinmine One can.
The challenge is that it is much more work to set up and will require more research from you. But estimates suggest that you may be able to earn as much as $8 a day in Bitcoin.
Mining cryptocurrency is not really something you can do with a cheap computer and some coding skills at this point in the game. Mining is extremely competitive and miners are competing with much bigger fish that have much more capital to invest in their projects.
This is not meant to discourage you from your dreams to become a crypto-miner! This is only to caution you that it is going to take a lot more than a single Coinmine One box to be mine enough cryptocurrency to be able to pay off your mortgage.
Coinmine was designed to help get those who are interested in learning the basics of mining get into the game. The box does out require them to invest much of their time in the project. Based on all of the reviews considered, the product that Coinmine is super easy to use, and new users gain access to mined cryptocurrency almost immediately.
But at the end of the day, when it comes to cryptocurrency and mining -profits are not a guarantee.
Cryptocurrency is much like traditional investments -in that the more time and careful thought you put into your investments, the better off you will be in the long run.
And when it comes to mining, the sphere has gotten pretty small. Unfortunately, at this point, you are competing with many very large mining projects. So it is important to know what your expectations are from the start before you spend $700 USD.
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