Digital Cloud Mining (DCM)
The future of bitcoin mining is here!
What is Digital Cloud Mining (DCM) - Hashlet? (2015 - update - this appears to be a scam!)
A new term with a new concept - basically means the following guidelines.
- Small unit that is optimized for data center management.
- The miner (Hashlet Prime model) can be re-programmed on the fly - so as future cryptocurrency arrives it can be setup to mine those as well.
- Using digital chips that require less electricity and creates less heat compared to traditional ASIC miners = less electricity and less cost to maintain.
- Designed to work as a team as more units are added to your workgroup, the faster and more efficient the work.
- Cost per Hashrate is less then traditional ASIC miners.
GAW Miner is the 1st to release a DCM miner for general purchase as of 08/16/2014 now called the Hashlet Prime and HashletSolo.
It may reinvent the mining industry as a whole with this new technology.
The greatest risk for miners is the increase in competition compared to the hardware becoming obsolete very quickly. Throw in the ever increasing need for electricity for the newer devices and the hashrate difficulty increasing as more pools mine the same coin. In general - this leads to a very competitive industry " bitcoin mining " and priced out the average Joe from being able to be competitive in the bitcoin mining industry as a whole.
Some groups rich and successful one year ended up dead broke the next year, almost overnight.
The launch of DCM will allow small groups to get back in the mining game at a reasonable price and allow larger groups to have less fear over investing in miners that may not be able to mine newer coins types in near the future. Plus of course - less heat, less noise, and less electricity is good for everyone.
This new design - will it help the person with a small income get back into the game long term?
We will have to see - but it will allow a small income miner to quickly switch to new coins as they come out and take advantage of potential valuable coins before they get too expensive and still have the easy of being paid out in BTC Bitcoin currency.
This will lead to a new type of miner - let's call them "speculative miners" that can with modest budgets mine for beta and new coins in early development.
Then wait to see if they become hot or not - once the coin gets too competitive to mine. They simply move on to the next possible new "hot coin" and so forth.
The benefits for the industry is beta coins or new coins that do not have much of a following can be promoted to these "speculative miners" in the hope that they both can win!
This can be done with the Hashlet - by choosing the ZenPool or one of the other pools that focus on mining current most favorable alt-coin.
(AltCoin Mining) - Scrypt Average Payouts (09/04/2014)
Most of these pool focus on the top valued coin that is easiest to mine for that moment and they mine it.
The payouts are converted to start Bitcoin (BTC) for you to spend as you see fit.
What are my real costs with a Hashlet?
1. You buy ownership of the Hashlet at a one time fee.
I actually think of it more like adopting a miner, because you do not get physical take possession of it.
You just get to choose where it mines and get most of the profits, but also have to pay for its food, room and board and medical.
2. Daily maintenance fees is $.08 cents per day per Hashlet.
So cost per Hashlet + daily maintenance fees = your cost of ownership
Where is my ROI (Return on Investment)?
If you choose the zenpool your pay off it about 2 months.
Which means your cost of the purchase is paid back in about 2 months using current payment numbers.
If choose for example the Multipool Hashlet - 1 Multipool hashlet = $16.95 your ROI is in about 65 days.
They set the price on the Hashlet to match the overall cost for each model of hashlet to pay off in around 60 days.
So you have your cost + daily maintenance. After about 2 months you get your return in investment but still need to pay the .04 cents per day indefinitely.
What are your risks?
If the market falls below what you are earning - then yes "Captain - I think we have a problem".
At this moment there is no way to ask for your Hashlet to be put in standby mode.
So even if you are not profitable - you will still owe for the food, room and board and medical for your little pet hashlet.
The risk of higher difficulties is minimal if you choose the PRIME or Scrypt miners - because they can always switch to a coin on a less hash rate difficulty.
Yes - in a few years the "Scrypt" miner maybe be superseded by a new cryptocurrency type of alt-coin and be made obsolete.
The "Prime Hashlet" should be able to overcome that concern, and I am sure GAW will offer at that time an upgrade option for the "HashletSolo" models as well.
HashletSolo or Hashlet Prime?
Hashlet Prime - in much more expensive, but can be upgraded as new types of coins are developed.
HashletSolo - is set to mine on particular pool only, but is much cheaper.
Short run - get the Hashlet Solo - set for ZenPool and get the best value.
But in a few years - you will need to upgrade them to the newest best alt-coin - that are not known at this time.
If you like to play it safe - pay more money and get the "Hashlet Prime".
You pay more but many of us got burned in the bitcoin chase and remember the pain of becoming obsolete.
This model - removes those fears for the time being.
The only other concern is GAW Miner - if they go out of business - then the whole house of cards falls apart and us go along with it.
That being said - my money is on Gaw Miner and the CEO managing the company.
He has a vision for the future of Bitcoin and cryptocurrency in general that is well rounded and long term.
That being said - If another "MtGox" happens with the Hashlet - then I will meet you all near the headquarters to get my share of justice.
Few things more unsettling than a crowd of confused angry computer geeks - the picture alone will send people running for shelter.
NOTE: This did turn out to be a scam - see link on PayCoin
Remember: Don't take driving instructions from a blind man, or ask a cow if it likes cheeseburgers.