Wednesday, December 8

GMT Token Review: Mining Bitcoin Without Buying Expensive Equipment


Bitcoin mining is an industry that has grown steadily over the years as Bitcoin reaches more people. However, as the industry grows in scale, Bitcoin mining becomes increasingly difficult to access for the average investor. Capital requirements to establish a competitive mining operation are increasing. Also, many regions and countries are not viable locations for cryptocurrency mining due to high electricity costs.

GMT token makes Bitcoin mining more accessible

The token GMT launched in early 2021 is available on Ethereum and the Binance Smart Chain. The main distinguishing feature is that it gives users the ability to expose themselves to Bitcoin mining without having to buy mining equipment. BTC rewards for GMT holders accumulate daily. Investing in Bitcoin mining through GMT also has its advantages when it comes to liquidity. GMT tokens are listed on a variety of trading platforms and can be sold very easily. In comparison, the process of finding a buyer for used mining equipment is slower and more complex.

To avoid confusion, we must bear in mind that the GMT ecosystem is not completely decentralized, although the token itself is issued on a blockchain and can be freely traded. First of all, the hashrate that supports the GMT token is provided by a centralized company. They also handle mining rewards payments and determine how many GMT tokens are burned with each issuance. KYC is also a requirement to claim BTC mining rewards.

The lightweight champion token ambassador

GMT is getting more exposure around the world and not just among crypto enthusiasts. For example, Khabib Nurmagomedov, the oldest UFC lightweight champion and arguably the greatest mixed martial arts fighter of all time, has recently become an ambassador for the GMT token. Nurmagomedov said that “blockchain is a breakthrough like the Internet”, adding that he considers the GMT token to be “the most advanced token in the world.”

Advantages and disadvantages of the token

Before continuing, let’s quickly take a look at the main advantages and disadvantages of the token:

About GMT Token:

  • Makes Bitcoin Mining Easy to Access
  • BTC mining rewards accumulate daily
  • The amount of hashrate represented by each GMT token grows over time
  • GMT is much more liquid compared to buying mining equipment.

Cons of GMT Token:

  • It requires trust
  • KYC is required to claim BTC mining rewards

GMT Token Review

At launch, 1 GMT token was equal to 0.001 TH / s (terahashes per second). As GoMining adds additional mining capacity, new GMT tokens are issued to represent the newly added hashrate. A portion of each new GMT token issuance is burned, increasing the amount of hashrate that each GMT token represents. According to the GMT Token website, 1 GMT token represents 0.001493 TH / s at the time of writing. GoMining says it is using the proceeds from its GMT token sale to purchase new cryptocurrency mining equipment.

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GMT token burn

According to the latest version of the GMT Token whitepaper, between 20% and 100% of new tokens are burned each time GMT is issued. GoMining management decides the proportion of tokens burned. This ratio depends on the price trends in the cryptocurrency market and the price of the GMT token. These are the three levels of token burn:

  • Downward price trend: 20-40% of new tokens are burned
  • Stable price trend: 40-60% of new tokens are burned
  • Increasing price trend: 60-100% of new tokens are burned

It is important to note that when newly issued tokens are burned, GMT holders’ tokens are not affected as they own the same number of tokens as before. The only change is that each token represents more hashrate. As the amount of hashrate that joins the Bitcoin network tends to grow over time, this GMT feature is important, because it essentially allows holders to keep up with the growth of the mining industry.

GMT token issuance

At the time of writing this article, the last GMT issuance occurred on October 10, 2021. GoMining issued an additional 20.6 million GMT tokens and added 30,000 TH / s in hashrate. 25% of the newly issued GMT tokens were burned. Statistics on all GMT token burns so far are available on the GMT.io website.

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GMT’s initial supply was 100 million tokens on the Ethereum blockchain. At the time of writing, there are around 190.8 million GMT tokens on Ethereum and 10 million GMT tokens on Binance Smart Chain. This supply will continue to grow over time as GoMining implements additional hashrate.

While each GMT token represents a certain amount of hashrate, the actual value of the tokens is determined by supply and demand on centralized and decentralized cryptocurrency exchanges. GMT is listed on centralized exchanges such as Bitglobal, LBank, and HitBTC, but traders can also access it on Uniswap, SushiSwap, and PancakeSwap.

The GMT.io platform

If you are GMT and want to receive BTC mining rewards in your Bitcoin wallet, you will have to create an account on the GMT.io website. To receive rewards, you will need to provide the Ethereum address where you are storing your GMT, as well as the Bitcoin address where you want to receive your BTC mining rewards.

To receive your rewards, you will need to verify your identity through a KYC (know your customer) process. The rewards will continue to accrue even if you haven’t completed KYC yet, but you won’t be able to claim them until you verify your identity.

Security

The GMT token itself is compatible with Ledger and Trezor hardware wallets, providing a great option for users who have a larger amount or simply value the security of their holdings highly.

You can also configure 2-factor authentication in GMT.io to help prevent unauthorized access to your account. You will also receive email notifications when your account performs important actions, such as setting up a new Ethereum address for the GMT token.

GMT Token was audited by CertiK in August 2021 and passed the exam with flying colors. CertiK is a leading blockchain security firm, using artificial intelligence technology to secure and monitor blockchain protocols and smart contracts. The company uses so-called “penetration tests” to look for potential vulnerabilities in the code to prevent critical attack vectors.

conclusion

GMT Token presents a unique and easily accessible way to expose yourself to Bitcoin mining. The GMT.io platform is easy to use, although the KYC requirement could be a deal breaker for some users.

Since each token represents an increasing amount of hashrate as GoMining adds more capacity over time, GMT inherently incentivizes long-term holding. In the event that users need liquidity, they can simply sell their GMT on centralized or decentralized exchanges, without having to go through the difficult process of selling mining hardware.

If you are looking for a way to get into Bitcoin mining but don’t want to deal with the large upfront costs of setting up a real mining operation, GMT Token is certainly an option worth considering.

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