It’s official: Cryptosmart has launched a token linked to Bitcoin miners.
Cryposmart: the new token dedicated to Bitcoin miners
It’s called Bitcoin Hash Power (BHP), an ERC-20 token on the Ethereum blockchain that allows all its holders to participate in the mining of blocks on the Bitcoin blockchain, receiving corresponding rewards in BTC.
In fact, for every BHP token purchased you effectively purchase a 1 Terahash hashpower per second for Bitcoin mining.
BHP tokens can also be staked in IBX’s mining farms, found in Iceland, in the US (Texas, New York) and in Canada (Manitoba).
The mining farms use different miner models to validate blocks and extract BTC, such as Antminer XP 140T, S19 pro110T, S19J 104T, S19J100T, and Avalon 1246 90T.
The goal is to provide those who do not want to mine Bitcoin at home with the opportunity to do so remotely.
However, this is not a form of cloud mining, because by buying BHP tokens you are buying, not renting computing power.
The purchased BHP tokens can then be redeemed at any time by receiving the underlying miner in return, i.e., by requesting that the machine be shipped to a mining farm of one’s choice.
In order to do this, it is necessary to return an amount of BHP tokens equal to the machine’s computing power in Terahash per second.
A web page has also been made available, on which it is possible to check in real time that the total hashrate of IBX miners has a 1:1 match with the BHP tokens issued, as well as to check how many BTC IBX manages to mine daily in this way.
It is worth noting that profits for Bitcoin miners have increased lately, due to increased fees from mempool congestion.
Despite this, the hashrate has not increased by much, so it may be particularly profitable to mine BTC at this time.
Bitcoin mining profitability had dropped to as low as $0.05 per THash/s per day in late 2022, but by 2023 it was back around $0.08. In recent days, there was a peak as high as $0.12, but yesterday it returned to $0.08.
It is worth mentioning that a year ago it was above $0.12, and during the 2021 peaks it even rose above $0.40.
For now, the BHP token is not yet tradable on the markets, but it can be purchased on Cryptosmart’s Launchpad. In order to receive the rewards, after purchasing it, it must be staked in the space provided in IBX’s mining farms.
At this time it appears that a total of 6,000 tokens have been issued, against a total hashpower of 8,300 THash/s.
To learn more about the project, it is possible to read the related whitepaper.
Source: https://en.cryptonomist.ch/2023/05/16/token-bitcoin-miners-cryptosmart/