The Current Landscape of Bitcoin Mining
With Bitcoin prices surging over the last year, interest in mining investments has skyrocketed among both institutional and retail investors. However, the complexity of these investments has greatly increased, presenting multiple challenges. Mining operations today can only be profitable in regions with very low electricity prices, or using autonomously-produced energy. Additionally, procuring and maintaining the mining machines and infrastructure involves a large capital investment and technical expertise. For those incapable or unwilling to face these challenges, only two viable options remain: cloud mining and colocation mining.
Cloud mining is simple to access, but often comes with significant drawbacks. Most services offer time-limited hashrate rentals that often fail to generate enough rewards to cover the initial investment. Moreover, the industry has seen numerous scams, known as “rug pulls,” where developers abscond with investors’ funds. On the other hand, colocation mining is considered safer but requires a large upfront investment to cover miner purchases, electricity costs, hosting fees, and potential repairs. Additionally, selecting the appropriate machines requires knowledge of different models and suppliers.
Infinity Hash’s Community Mining Model
Infinity Hash is introducing an innovative concept called community mining. This model aims to provide a sustainable, long-term investment option without the need for significant capital investment or technical expertise. This is achieved through the issuance of Infinity Hash shares.
Infinity Hash shares represent a stake in the mining project. Proceeds from the sale of shares are entirely used to fund mining infrastructure, ensuring that each share is backed by tangible mining equipment. As more shares are sold, Infinity Hash expands its operations, continually increasing its mining capacity. Shareholders benefit from the daily rewards generated by the entire mining operation, which can be withdrawn at any time without restrictions. Additionally, shareholders can sell their shares on the open market to other community members, which provides them with the opportunity to cash out at any point.
The Power of Reinvestment
A critical challenge in Bitcoin mining is maintaining the long-term viability of the operation. Mining equipment requires regular maintenance, repairs, and eventual replacement as it becomes obsolete. Infinity Hash addresses this through a strategic reinvestment model. Half of the rewards generated by the mining operation are reinvested into maintaining, upgrading, and expanding the mining infrastructure. This approach ensures that the hashrate backing each share grows over time, potentially providing higher returns the longer the shares are held.
This reinvestment strategy sets Infinity Hash apart from other mining investments, where the hashrate remains static or declines over time due to equipment degradation and increasing mining difficulty. Additionally, since Infinity Hash shares do not expire, investors can adopt a long-term perspective without a specific time horizon. By continuously renewing and upgrading to the latest and most efficient mining machines, Infinity Hash ensures that its mining equipment remains at the cutting edge of technology.
Greater Flexibility through Customizable Rewards
As of today, Infinity Hash is a Bitcoin only operation. However, it also allows shareholders the flexibility to receive their rewards in various cryptocurrencies. This feature enables investors to diversify their portfolios according to their preferences and strategies. Shareholders can choose any allocation of their rewards across multiple cryptocurrencies. For instance, an investor might opt to receive 50% of their rewards in BTC, 25% in USDT, and 25% in KAS. Infinity Hash facilitates this by converting the rewards accordingly and crediting them to the shareholders’ accounts.
Ensuring Traceability, Transparency and Trust
Transparency is a key component of Infinity Hash’s community-centric approach. The project ensures that all shareholders can monitor the mining activities and track their rewards from generation to distribution. Infinity Hash provides public access to detailed reports on mining performance, equipment purchases, and all expenditures through monthly transparency reports and other blog publications.
Each mining machine is assigned an individual tracking number, allowing shareholders to follow specific data points such as model, performance, current status, and historical earnings. These are all verifiable through the website of the third-party mining pool Infinity Hash uses. This level of transparency fosters trust within the community, enabling investors to verify the integrity and performance of the mining operation.
Reward Distribution and Community Engagement
The process of distributing rewards to shareholders is straightforward. Each day, Infinity Hash calculates the total mining profits after deducting electricity costs, which are converted to USDT and allocated to a dedicated wallet. From the remaining amount, half is then credited directly to shareholders in the currency of their choice, while the other half is reinvested into the mining operation. This reinvestment supports the continuous growth and maintenance of the mining infrastructure, ensuring the project remains profitable and sustainable over the long term.
As a community-driven project, Infinity Hash also encourages shareholders to participate in the decision-making process. Significant changes and updates are put to a vote, allowing investors to express their preferences and ensuring the project evolves in a direction that aligns with the community’s interests.
Reducing Costs through Expansion
Infinity Hash is committed to enhancing profitability by reducing operational costs. One key strategy is expanding to regions with lower electricity prices. Currently, Infinity Hash miners benefit from an exceptionally low electricity rate of $0.045 per kWh. However, further reducing these costs can significantly boost profit margins for shareholders. By identifying and expanding to new geographical locations, Infinity Hash aims to lower the average electricity cost across its operations.
This geographical diversification also helps mitigate risks associated with relying on a single location. By distributing mining power across various sites, Infinity Hash reduces the likelihood of simultaneous downtime affecting all operations, ensuring more stable and reliable performance. Find below a list of future planned expansions and a projection of the projected average electricity cost that will be achieved.
By innovating with community mining, strategic reinvestment, and customizable rewards, Infinity Hash offers a compelling solution for those looking to invest in Bitcoin mining without the associated complexities and risks.