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I bought my first NFT today: a mining NFT
In a new venture into digital assets, I made my first Non-fungible Token (NFT) purchase — not just any NFT, but a mining NFT. Today’s video is sponsored by coin ledger.io, a team-driven platform making tax loss harvesting for crypto miners a breeze as the deadline for harvesting Capital losses in crypto approaches.
In a seamless process, coin ledger.io enables you to pull your wallet transactions and generate a tax loss harvesting report, helping you project capital losses that can be deducted in the next tax season. I have partnered with coin ledger.io to offer this service free of charge to the community.
A Disclaimer: Do Your Homework
Before we explore further, it’s important to state that this video is not a substitute for personal research or financial advice. NFTs are relatively new and can be risky. Many NFT projects fail, are abandoned or could turn out to be scams, so invest carefully in what you confidently believe in.
An Introduction to my NFT adventure
While I have primarily avoided NFTs in the past, I have recently found an NFT niche I can get behind — mining NFTs. Traditionally, NFTs are associated with digital art, but they can be so much more. This mining NFT presents a unique opportunity for miners who do not wish to make the steep upfront investment in hardware or deal with high electricity costs.
Instead of thinking of NFTs as digital artwork or another abstract concept, think of this mining NFT as a blockchain-based contract and an investment opportunity.
Mining NFTs: An innovative investment opportunity
What are mining NFTs?
Mining NFTs enable you to share in the hash rate, or computing power, used in cryptocurrency mining without owning any hardware. Upon purchase, your NFT provides access to a certain amount of hash rate for a specific period, enabling you to earn as the miners associated with the NFT generate cryptocurrency.
How does it work?
As an example, I bought an NFT from fraction mine for 380 Matic, which equates to approximately $300. This NFT gives me access to 6 – 12 terahashes of computing power that their ASIC miners positioned in Texas are using to mine Bitcoin.
As a holder of the NFT, I will earn Bitcoin, with the amount being proportional to the hash rate my NFT represents. The operators of the mining farm, in return, deduct the electricity costs associated with my share of the mining and pay out the profits.
What’s in the future?
The mining NFT concept is a gamble, but one that could have significant potential. Over time, as Bitcoin mining difficulty increases, NFT holders are guaranteed an increase in hash rate to keep up. This ensures the NFT retains its value over time and makes it an attractive long-term investment.
Mining NFTs: A glimpse into the future?
Mining NFTs are a novel concept and still relatively untested territory. However, they represent an exciting possibility for the future of cryptocurrency mining. This innovative approach allows would-be miners to enter the industry without the traditional barriers of entry, such as high capital costs or expensive electricity.
While mining NFTs are just one aspect of the rapidly expanding utilization of blockchain technology, they reflect the flexibility and adaptability of this powerful technology. I look forward to rolling out further updates on my mining NFT adventure.
Whether this venture into mining NFTs and platforms such as fraction mining becomes a staple in the crypto mining world remains to be seen. Nonetheless, exploring this fresh frontier and staying open to emerging trends is essential for any crypto enthusiast.
This video isn’t financial advice — it’s an account of my journey into mining NFTs. Remember to conduct your own research, and invest wisely.
Whether it’s mining NFTs or other crypto avenues, I’d love to hear about your experiences and thoughts. Is this a glimpse into the future of mining? Let’s navigate this exciting landscape together.
Here’s to the future of crypto mining. Adventure responsibly!