ALL YOU NEED TO KNOW ABOUT CROWD FUNDED MINING PROJECT

ALL YOU NEED TO KNOW ABOUT CROWD FUNDED MINING PROJECT

Image source :https://steemit.com/mining/@uxair/going-to-setup-another-gpu-mining-rig-do-anyone-wants-to-participate

What is Crowd funded mining project?

Crowd funded mining project is a project that gives steemians the opportunity to be part of a new joint mining rig, to be set up by a mining pro steemian, with the steemit username @uxair, so as to increase the possible outcome the mining rig would produce. This joint mining rig will operate on a free management style, meaning that all the investors will have a personal private key to the mining pool account, and hence be fully aware of everything going on.

Image source :Google images

To illustrate this better, imagine the cost of producing a laptop is $1000. But the moment you are producing a thousand of this same laptop, the individual cost could reduce to as low as $900. This is because the individual cost of production reduces when the amount of goods to be produced increases. This is the secret behind mass production.
The same applies to Crowd funded mining project. The more the amount of resources involved, the more capacity the crowd funded mining project can have, and hence the more the possible profit.

Who created this crowd funded mining project and when was it created

Image source : Google images

This Crowd funded mining project was put together by @uxair on the 07/01/18. This project came 50 days after he setup his last rig, where he used Rx Vega cards as GPU.

BUDGET FOR THE MINING RIG

Image source : Google images

First of all, it is of utmost importance that the hardware being bought are genuine and brand new, because we don’t want to bet on used products, the possibility of them failing is on the high side. We want to think long-term.
Also, all products will be under full warranty, ranging from 1-3 years.

Here are the specifications of the various components of the joint mining rig
Mother Board : ASUS B-350-F ----------$180
PSU: Thermaltake 630W x2 -------------$140
Processor: Intel Pentium G4400 --------$70
Riser Cards x6 v007 ------------------------$60
Sapphire Nitro + RX580 x6-370 x6------$2220
Casing and Electric Board -----------------$30
SSD 120GB-------------------------------------$60

TOTAL: $2760

Out of the benevolence of @uxair, he has decided to make available his keyboard, mouse, and monitor, helping to save cost. The rig is going to cost almost $2760 or 330 SBD.
The minimum anyone can contribute is 3.3 SBD, meaning that the least amount of shares you can own is 1%. This makes it less cumbersome. This does not mean that you can’t donate a higher amount like 5 SBD, 8 SBD, 60 SBD, 3.5 SBD, etc. but it can’t be below 3.3 SBD

HOW IS THE CROWDFUNDED MINING PROJECT GOING TO FUNCTION AND BE MANAGED

Image source : Google images

This project is going to be managed by means of a free management style. This means that everyone who will be part of the system will be well aware of all the operations of the system, and will be open to the workings of the system. They would each have an access key to the mining pool platform. To illustrate further, let’s talk about some part of this function and management.

Ownership

Everyone in the system will have their appropriate ownership, with respect to the amount of shares they invested. This is the same as buying shares in a company, football club, or business. The final amount that is raised before the deadline (20/01/18) will be subtracted from the required amount of 330 SBD, and the rest will be completed by @uxair.

Mining pool used

The mining pool used will be ‘nanopool’, and all the investors will have a login access to the nanopool monitor, so that all investors can monitor the working of the machine and also its profitability.
The plan is to mine Etherum and Etherum Classic only + siacoin on the side, since we are using a dual miner.

PROS AND CONS OF THIS CROWDFUNDING PROJECT

Crowdfunding is one of the most lucrative way to for maximizing the concept of mining. Through crowdfunding, we can make more capital available to make the business thrive. However, that does not mean that one must blindly trust any crowdfunding platform that one comes across. One must act wise enough to identify the risks attached to the platform.

Pros

• This project enables much more profit to be gotten from the same technique. Through this crowdfunding, more people can be given the opportunity to take part in this bitcoin mining, even when they have little or no idea on how to mine. Also, much more profit would be gotten from the mining, as opposed to if it were only the miner carrying the financial burden.
• Through this crowdfunding, the risks involved are shared among all the investors. If the financial burden was borne by only one person, then the risk will be borne by only one person.
• Crowdfunding is a really great tool for networking. In addition to the financial benefits, the coming together of many people, gives an opportunity for networking.

Cons

The only issue I can see here is:

• Trust: Because an investor is giving his funds to a person who he has no physical contact with, with no guarantee of returns, it triggers the trust alarm in the person. There has to be a conscious effort on the side of the business owner, to act in a very trustworthy way at all times.

REASONS WHY YOU SHOULD PARTICIPATE IN THIS VENTURE

• There is a lesser chance of losing your funds, in that @uxair has given us a total breakdown (mini-business plan) of how he intends to use the funds.
• Checking the reputation of @uxair, we can see that he has a reputation of 59, which means he has acquired some level of trust in his past dealings here on steemit.
• The minimum investment asked is on the small side(3 SBD) , hence reducing the risk taken.
• Finally, @uxair stated it clearly that you should not participate if you are not convinced that it is genuine. This shoeless he not after your SBD, but after a win-win situation.

I hope I have been able to shed more light on the issue of crowdfunded mining project by @uxair. For more information, visit the following links:

• https://steemit.com/mining/@uxair/mining-rig-setup-crowd-funding-proposal-investment-oppurtunity-2018

• https://steemit.com/mining/@uxair/crowd-funded-mining-rig-update-announcement-for-members