Cryptocurrency Mining Sites Start to Use Personal Computers as Miners

May 09, 2018

Number of online mining sites that pay cryptocurrency just for having a computer on is on rise. There are even sites that incorporate games so that it will not be too boring to spend time on making cryptocurrency. These sites compensate users by utilizing their computers as miners.
According to an industry, sites that compensate after using normal people’s PCs as miners for cryptocurrency have made their appearances. Similar sites have been emerging one by one recently. It is easy to see sites from internet that advertise by saying that they have amount of mining more than other sites. Some sites do not even have procedures for membership and only require input of an account from a cryptocurrency exchange. One site even explained that it is possible to mine cryptocurrency just through a Smartphone and added that it is possible to collect cryptocurrency even during a sleep.
Idea of these sites was actually brilliant. Process of becoming a member of these sites was very easy as they only required emails and passwords. They did not even request an install of a separate security program. One site had a Tetris game and it showed one Satoshi on the upper hand after 5 minutes of playing. One Satoshi indicates 0.00000001 Bitcoin. Considering that one Bitcoin is estimated to be $9,269 (10 million KRW), one Satoshi is 0.1 KRW and does not translate to a lot of money.
Satoshi that is gathered through games can be deposited right away as these sites exchange it with cryptocurrencies such as Bitcoin, Bitcoin Cash, Litecoin, Dash, and Dogecoin.

Image of cryptocurrency mining sites that are linked to games <Image of cryptocurrency mining sites that are linked to games>

Number of different games that are provided through these sites is over 600. These sites are filled with relatively simple games such as Tetris and chess that are easy to play. However, these games are collaterals as sites give out one Satoshi every 5 minutes even if one does not play a game. Sites automatically give out Satoshi according to amount of time people are connected to these sites. Amount of profit that these sites make is unknown. However, they take a percentage of Satoshi people earned as commission.
Profit rate is depended on performance of computers as mining speed is improved depending on performance of computers. Number of CPU cores decides mining speed. Amount of mining increases proportionally to number of cores. These sites also pay compensations whenever people bring new members by using Facebook or Twitter as advertisement means.
Experts are showing negative views towards this business model as profitability of mining of Bitcoin collapsed. According to a data recently announced by Morgan Stanley, production cost of mining of Bitcoin is $8,600 per Bitcoin. As price of one Bitcoin fell to $5,000 this year, many small and medium companies are not able to withstand collapse of profitability.
As an alternative, these companies are using P2P (Peer to Peer) method that utilize personal computers and Cloud servers to mine. “Although number of companies that are looking for breakthroughs through personal computers is on rise, it is still difficult for them to secure competitive production cost.” said a representative for an industry. “It is questionable to see how much individuals, who cannot receive reasonable amount of profit, will provide their personal computers as mining means.”
Staff Reporter Choi, Jonghee | choijh@etnews.com

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