DigitalBTC, the Australian investment group, is preparing to launch DigitalX Mintsy, a cloud mining platform where people can lease computing power to others. The Cryptsy exchange will handle the tran
DigitalBTC, the Australian investment group, is preparing to launch DigitalX Mintsy, a cloud mining platform where people can lease computing power to others. The Cryptsy exchange will handle the transactions.
The concept mirrors CEX.io's cloud mining service, except Mintsy lets owners put their own equipment on the market. Buyers purchase computing power through contracts denominated in "hashflexes" (SHA256), "liteflexes" (Scrypt), and "xflexes" (x11-x15). Right now, only Mintsy's own mining contracts are available for purchase.
A few concerns hang over the marketplace. How will Mintsy confirm that sellers keep their machines running around the clock? The company hasn't explained its strategy for managing downtime, though it says that when its own equipment goes offline, it extends contracts. That approach may not translate to a semi-anonymous peer-to-peer market. Mintsy has not responded to questions about other safeguards.
The platform does show buyer ratings and hardware performance history. Those metrics may help buyers assess which rigs are worth renting.
Mintsy offers technical flexibility. Once buyers purchase computing power, they can direct it toward different mining pools or cryptocurrency networks. Initially, SHA256, Scrypt, and X11 mining will be available, though the interface suggests Mintsy plans to add more options. Coins earned flow into a buyer's Cryptsy account.
DigitalBTC has invested $250,000 in Cryptsy. According to the company's investor materials, Cryptsy users will see encouragement to use Mintsy.
The current pricing: 10MH/s Scrypt and 100GH/s SHA256 contracts run $59.99 for three months or $99.99 for six months. No maintenance fees apply, so figuring returns is straightforward. At these rates and today's cryptocurrency prices, Bitcoin and Litecoin miners should come out with a small surplus.
Mintsy added week-long contracts before release: $10 for SHA256, $15 for Scrypt.
The Cryptsy tie-in opens possibilities. Miners might eventually point their purchased power at hundreds of coins on the exchange. DigitalBTC hasn't confirmed this, but the underlying technology makes it feasible.
Bitcoin mining has hit rough patches. Low prices battered the entire sector, making it hard for even large operations to turn profits. Prices have climbed this past week, but margins stay thin. DigitalBTC's investor materials acknowledge that bitcoin price swings have hurt their mining division. Mintsy may offer a revenue stream that doesn't depend on bitcoin prices.
The company's bet assumes people believe in cloud mining's future and expect cryptocurrency prices to rise. Those betting on higher prices in the months ahead have an incentive to purchase hashrate without worrying about hardware maintenance.
DigitalBTC trades on the ASX, Australia's main stock exchange.
