SEC Halts KODAK Branded ASIC
Spotlite (the company that develped these) planned to lease the SHA-256 (bitcoin-focused) Kodak KashMiner (and rigs dedicated to other cryptocurrencies) for $3,400 for two years, and it would give you half of the currency the machine generates while pocketing the rest. In its marketing, Spotlite said the ASIC (essentially a third-party device from a larger manufacturer with a sticker slapped on the side) would generate a value of $375 per month, or a total of $9,000 over the two years, given an average bitcoin price of $14,000 (price at the time). Yet that completely overlooks how bitcoin mining actually works. As i have discussed in previous articles that mining the coin becomes more difficult and time-consuming as more of the currency is generated, and disregards the volitility of the market. CEO Halston Mikail told the BBC that the Securities and Exchange Commission had blocked the scheme.
The price of bitcoin would need to hover at around $28,000 to deliver Spotlite’s suggested level of return; the current value is $6,715, or less than a quarter of that mark. So, actually netting a solid return from the Kodak KashMiner seemed highly improbable.
Spotlite had planned to store the machines at Kodak’s headquarters in Rochester, New York, to take advantage of low-cost electricity there. The goal was to have hundreds of machines in place, and Mikail had said his firm already had 80 up and running there. However, Kodak told the BBC the devices were never installed at its office. The company also claims that the ASIC was never officially licensed, though it’s not clear whether it took any legal action over the branding.
4NEW is Mining Crypto with Waste Power
According to a press release Friday, 4NEW claims it will turn waste into digital gold, by mining the top 20 cryptocurrencies, while making a positive contribution to the environment. The company said electricity is a by-product, created from processing urban waste materials and the fees derived from its waste processing business offset all of the operational costs of running its processing plants, essentially making the electricity free. The two power plants generate 10 megawatts per hour which will power the cryptocurrency mining operation. The company said it is capable of supporting up to 360 billion gigahashes per hour in mining capacity.
“4NEW is setting up a new electricity generating industrial plant that will not just have a low impact on the environment, but will actually contribute to the plus side of the ledger, helping the environment by converting city waste to energy, with no harmful pollution or residue, thanks to a closed combustion chamber,” said founder Varun Datta, in the statement. By applying a sustainable approach to producing electricity from waste to the otherwise unsustainable practice of crypto mining, 4NEW may have found an environmentally sound formula to create value in the cryptocurrency business. Its third processing plant is due for its operational launch in 2019, and more are also planned around the world, including in the US, Puerto Rico and St. Lucia.
“We expect rapid and significant economic success, not simply because we are so sure of our business model, but because of the size of the problems we are tackling, brought about by the past failures and polluting solutions of others, Datta said. “The vision is to contribute something really valuable, not just to the blockchain space, but to the world. And they all share it.”
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Also published on Medium.