The difference between a Dollar on a mining profitability calculator, a Dollar on hash power marketplace and a Dollar in your pocket
Making money from crypto coins mining is rather a complex matter on the technology side but perhaps even harder when it comes to getting hard dollars in your pocket.
WinMiner vision is to make both those issues become trivial – install WinMiner software on your machine and the only other thing you need to do is collect your money in any one of the withdrawal methods we offer.
There are different ways to perform mining, from solo, “everything on your own” through selling your hash power in a market place to doing everything in one click with WinMiner.
Naturally performance comparisons are important, but it’s even more important to compare apples to apples. So let’s take a look at the different performance metrics you can see out there:
Mining profit calculators
There are many such calculators out there and they are try and provide an estimation in dollars for a given hashing power.
Some do a better job than others, in terms of using the most up to date info. We have seen calculators not updating in time on halving of blocks, we have seen some not using the most real-time info, but we have also seen some which are doing a great job, maybe even too great making it a little hard to really understand if the metrics are based on real time data at that very moment or a 24h average etc.
The calculators we are familiar with share two important things –
(1)They assume a frictionless perfect world when providing their estimates; and
(2)They will not buy from you your hash power for the price they claim it is worth.
This makes calculators data purely theoretical. It does not take into account many of the things you would encounter when actually doing mining – it assumes perfect machines, perfect network, it assumes no uncle blocks (smaller number of coins per block) that miners sometimes get instead of regular blocks, it assumes no exchange fees, even if you mine PIRL that in order to turn it into dollars you need to turn it into BTC first and it does not take into account the bid and ask spreads that exist per each exchange activity, and that is just to name a few.
It resembles in many ways the difference between the MPG your car manufacturers claims your car does to the actual MPG you get every day.
We are not saying mining profit calculators are bad. Not at all! We think they are super important and do a great job in general, just make sure you understand what their numbers really mean.
Hash power marketplaces
Another type of performance source are marketplaces where sellers and buyers of hash power exchange hash for BTC.
These are also very important players that provide a very important service.
Their scope is very simple and effective, get paid in BTC for your hash power, they also translate the BTC rate into dollars for reference only.
These are not Dollars you really earn, you earn BTC, that means –
(1) The Dollar value you think you are making is theoretical – They will not give you this dollar value in a withdraw, and when you try to exchange your BTC into dollars you will realize that the dollar amount is way smaller (since no spread and fees are being taken into account.
(2) Your Dollar value of all the hash you sold changes retroactively with the volatile price of BTC. That could be great in an a up trending BTC price, but as we have seen lately could be terrible in a down trending BTC, where days of mining can become unprofitable retroactively.
The thing is such market places, de facto, force a long position on BTC whether you like it or not. Your profits are not hedged and you can’t enjoy downward trend BTC opportunities.
But then again, great and important players in this market just make sure you understand the true value of a Dollar displayed here.
We were raised up with the notion that one should not give himself compliments so let’s be clear about this, we work very hard to make WinMiner the best we can, but at the same time we do not think we are perfect (far from it..:-)).
We do not think our solution is always the best for everyone, or free of errors or issues, we are another type of play in this market and we have some unique benefits for both novice and advanced users.
(1) Super easy way of making real money
(2) Dollar amount is real
(3) No surprises – your balance can only go up (even if the BTC collapses, as we just witnessed). So you don’t end up losing money while you were thinking you were profitable all along.
(4) Withdrawals – anytime, starting from $10 minimum amount, multiple withdrawal methods. While this sounds simple its very unique and has tremendous value for you:
a. Safety – Keep withdrawing and protecting your funds in the best way YOU deem fit
b. We don’t force you to be BTC bullish:
i. If you are BTC bullish – by all means withdraw BTC and hold it
ii. If want to enjoy dips in BTC price – withdraw in BTC when the BTC price is bottoming
iii. If you want to ride the waves of Litecoin or Ethereum – just do it in the same way
Bottom line, performance comparing is the right thing to do, just make sure you compare apples to apples.