HydroMiner, a project aiming to mine bitcoin and other cryptocurrencies using cheap hydroelectric power from the European Alps, is having an initial coin offering (ICO) and issuing its own token, H2O. The project was established by Nadine and Nicole Damblon, who in 2014 began mining bitcoin from their apartment in Austria and soon thereafter decided to expand to hydroelectric power plants to increase their competitiveness and profitability.
Currently, as bitcoin and other cryptocurrencies increase in price and as competition to mine them intensify, the cost of mining cryptocurrencies has been rising significantly over time, making mining unprofitable for average people in many countries where the cost of electricity is relatively high. As the costs continue to rise due to increased competition among miners, many projects will need to scale their mining to attain profitability and continue their operations. By using hydroelectric power — a cheap, renewable form of energy — HydroMiner will be able to compete with mining farms in countries with cheap electricity, such as China.
Unlike other cryptocurrencies, H2O will be backed by physical assets such as the mining equipment and contracts for hydroelectric power plants, as well as the expertise and experience of the project’s founders. The funds raised during the ICO will be used to expand beyond the current plants in Austria to neighboring countries of Europe, as well as to administer the project. H2O token holders will be able to purchase mining power contracts and will receive the profits of their investments, minus the costs of running the project.
HydroMiner will use sea freight containers, which can easily be assembled and disassembled, to store the mining equipment and keep it cool at the hydroelectric power plants. A portion of the funds from the ICO will be allotted toward the purchasing of them.
H2O tokens are ERC20 compliant, which will allow token holders to store them in common Ethereum wallets. As an ERC20 token, H2O will join the increasingly popular Ethereum protocol, which has a reputation for having a strong community and emphasizing security. No more than 100,000,000 H2O tokens will be created, which helps provide the token with a floor of value, given that it cannot be mined or inflated as with other cryptocurrencies.
From October 18 to November 15, 2017, HydroMiner will be having its ICO. This will be an opportunity for investors to buy some tokens at a discount.
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