▼Why bitcoin miners don't want to use the blockchain - an article and blogpost for release ▲

HELLO EVERYONE ⭐︎

Make no mistake, the beauty of the blockchain is it's ability to take data, distribute it on a network safely and securely, and of course to have that layer of currency attached to it- bitcoin. That's powerful, and that's why this technology is so transformative. 

But who wants to use the blockchain if they don't want you to know the numbers? I mean, being transparent is something an organization chooses to do because of their values and their culture and not everyone embraces those values. Now, when I look at the mining landscape, I see mostly a lack of transparency. I see miners who have completed an ico and immediately went into court battles over partners misappropriating funds; I've seen another mining ico that raised capital based on their wonderful facility in Sweden, only to let investors know- AFTER THE ICO-  that they may have found "an even more competitive location" conviently  timed:) and then there are others who have begun paying investors a fraction of what they should be getting. 

Now, I love mining, and I'm pretty outspoken about that. Despite the bear market we're in, the allure of passive income in bitcoin and having leverage to the price of bitcoin is just awesome. That's what it's all about if you ask me. But, the mining industry is for obvious reasons not embracing transparency or the blockchain. 

Power costs, construction costs (if you are building a facility  from scratch), rent, engineers, maintenance, etc...) These are the normal operating costs of any mining business. The thing is, the higher your costs, the less your investors make, so that is what mining firms don't like. They want to highlight how sexy their facilities are, how remote and secretive their locations are, and what their power costs are- but when it comes to showing their investors the numbers? Umm...

So  here's the deal. It's simple, if a mining farm wants to be transparent, they should strive to put it all on the blockchain- that is what the blockchain is for. Unfortunately, they don't want that. It's funny how  the most fundamental function of the blockchain itself, mining, is riddled with lack of transparency. I think that will change over time, and maybe we are going to lead the way. When I started Elevate Group  with my partner Gabi- we sat down and had a talk about how we were going  to run this, what was important for us. The first thing I said was, we have to be transparent, we have to show everything, and we can't hold  back. Thank you Gabi for being 100% on board with that. That was the foundation of our partnership, and of the farm we're building. We decided to simplify things even further, we already had the farm- the building, the engineers, the cheap power, etc... we were lucky in that  way. We didn't need to burden our investors with these costs, that was a great benefit to our investors. When it came time to show the costs that we did have, we didn't shy away from that either, and I commend us on that to be honest. Why? Because selling what an investor wants to  hear is a tantalizing offer, make a bunch of promises, raise a ton of  money, and you know, give them what's left. That is unfortunately the  result of many of these projects. 

So how are we different? Well, we're going on the blockchain. What does that mean?  It means every piece of information down to the cummulative hours a  batch of miners is running will be posted on to the blockchain for our  investors to see. So what do I mean by that, well let's take power  costs, power is distributed among all the operating miners, now if you  have a certain power cost (ours is 5.5 cents per KwH), in order for the  investor to truly know what they are paying, they should have the hours running, the watts used, and the per KwH price of power. As far as I know, nobody is breaking that down for their investors. We are. When we  go live with our blockchain next month, investors will have the  breakdown of all associated costs for them to see, and calculate. 

That is what the blockchain is about, and that is what I call transparency. 

It's a bear market we're in right now and that means most investors get emotional and don't want to invest in a bear market. We see that and we understand it. But as a former trader, I'm all too familiar with the fact that the money is made in bear markets, in down markets when most people can't separate themselves from their emotions and end up sitting  on the sidelines. Then the market moves- and when it does it will be  fast, and then...yep, they all rush in buying at much higher prices. As much as I don't really like Buffet, he did say one very smart thing:

"Buy the fear, sell the greed" easier said than done I know:) 

So now is the time to build a foundation, a time to set up your business with the right people, the right partners, and to put all the right pieces in place. We're doing just that. We have chosen to build our blockchain on the NEM network. If you haven't heard of them, feel free to check them out, they are one of the largest and most advanced platforms in the space. 

https://nem.io/

When we are live, a customer who purchases a miner from us will  have an "ASIC" token deposited into their NEM wallet. That token represents your ownership in your miner, so if you bought 10, you will  have 10 tokens. Next, at the end of each month prior to profit distributions, we will upload all the data from each batch or "worker" onto the blockchain. The data will include cost of power, gross bitcoin amount mined, and hours of operation. Once these details are deployed onto the blockchain, we simply distribute profits and the blockchain will then recognize each "ASIC" token, distribute your due profit, and  post all the aforementioned details on a public ledger. Keep in mind, the token is not a security or a utility, it is not to trade, will not be on an exchange, and bears no value. What it does is allow the blockchain to know how many miners you own. 

We are one of the few, and possibly the only, mining farm committed to transparency. Why? Well, aside from the fact that doing business the right way will ultimately be rewarded, it's because we believe in mining and in bitcoin. Mining and bitcoin might be in a bear market right now, but it won't always be that way, and those who set their foundations down the right way now will be rewarded in the future. Welcome to - Elevate Group. 

Thank you, 

Amir Ness
Founder of Elevate Group 
elevategroup.io
amirness.io

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