The mining sector is an essential part of the crypto economy. It plays a pivotal role by ensuring that crypto networks remain true to the core foundations of decentralization, especially when it comes to consensus-based transaction validation. That said, the mining economy, as a result of increasing technical requirements, has shifted from a one-person venture-dominated market to an institutionalized landscape. However, solutions have begun to introduce ways to democratize the mining sector such that the average miner can compete and run a profitable business
One of the solutions at the heart of this conversation is Bitdeer. In this guide, we will explore the operations of this company as well as highlight its pros and cons.
What is Bitdeer?
Bitdeer describes itself as the world’s leading computing power-sharing platform. In essence, it has emerged as a formidable addition to the crypto mining market, and it looks to empower individual miners and reinforce the decentralization of the mining economy. The objective is to provide cloud mining services to users so that they do not have to undertake the often-complex processes involved in crypto mining.
The company argues that it provides an enabling mining environment that allows miners to evade the challenges and cost that comes with purchasing, maintaining and operating mining rigs. With Bitdeer, users can access cloud computing power for a fee and automatically redirect it to the mining pool of their choice. According to the information on its website, Bitdeer is unique because it “features traceable computing capacity, direct mining payment, straightforward and transparent payouts, and customizable service plans.”
Since it launched in December 2018, Bitdeer has provided cloud computing services to a community of miners cut across 200 countries, resulting in monthly traffic of over 2.5 million users. To meet the need of its growing userbase, the company has mining facilities spread across multiple continents like Asia, Europe, and America. These facilities jointly house hundreds of thousands of specialized mining machines.
Besides, it has partnered with Bitmain, the world’s leading mining hardware manufacturer, to provide users with the very best of mining services. Likewise, it has strategic partnerships with reputable mining pools, including BTC.com, Antpool, F2Pool, ViaBTC, and BTC.top. This deal provides users with more flexible options. Supported mineable coins include Bitcoin, Bitcoin Cash, Litecoin, Ethereum, Dash, Ethereum Classic, Z Cash, Decred, and CKB.
Furthermore, the platform features a hashrate marketplace. Here, Bitdeer limits itself to the role of intermediary between hashrate providers and users. As such, it offers an enabling environment where users can buy hashrates from merchants willing to sell their computing power.
It is worth mentioning that Bitdeer also delivers cloud mining services targeted at institutional investors. This package includes cloud hosting services, compliant procurement services, and executive consultation. All the above-listed features and services embody Bitdeer’s growing cloud mining ecosystem and positions it as a core component of the current mining economy.
What Are Bitdeer’s Service Plans?
Although Bitdeer lists multiple cryptocurrencies as supported coins on its website, a closer look shows that it currently only offers service plans for Bitcoin and Bitcoin Cash miners. In other words, it is only possible to buy cloud computing power for mining BTC and BCH. Below are the plans available to users.
Antminer S19 plans
In total, there are 8 Antminer S19 plans listed on Bitdeer. The first 4 sets of Antminer S19 plans offer a static revenue rate of 52.58% and have a duration of 480 days. Note that static revenue rates assume that the future mining output of the farm remains unchanged all through the duration of the service plan. With fees ranging between $3104.5 and $62,090, these plans are projected to have a static output of $0.3193/T/D. While this is a common trait of the first set of plans, the hashrates differ across the four service plans. The first generate 50 TH/s, while the second is 100 TH/s. The third and fourth provide 500 TH/s and 1000 TH/s respectively.
The second set of Antmier S19 plans deliver a static revenue rate of 80.31%, with the price ranging from $2200.80 to $73360 per miner. The static output is set at $0.3193/T/D and the duration is 720 days. Much like the first set of packages, the hashrates generated by each plan in the second set of Antminer S19 deals are different. The cheapest in this category generates 30 TH/s, while the most expensive plan provides 1000 TH/s.
Antminer S19 Pro
Lastly, there are 4 Antminer S19 Pro plans generating a static revenue rate of 4.33% and varying cloud hashrate to each miner. The first offers 30 TH/s at $945 while the second provides 50 TH/s for a $1,575 fee. The third and fourth cost $6300 for 200 TH/s and $15,750 for 500 TH/s respectively. The $1,575 cloud hashrate plan seems popular among users as it is the only service package that was sold out at the time of writing this review.
Note that Bitdeer takes into account several variables to ensure that its services fees are competitive. For one, it considers the market supply and demand of Bitcoin mining and how they affect mining difficulty. Hence Bitdeer does not use a fixed pricing model for its services. The price of each plan tends to fluctuate according to market variables.
Other Details About Bitdeer?
Recall that Bitdeer integrates with mining pools to provide more mining options for its users. These integrations help Bitdeer establish a transparent system where users can monitor the hashrate generated for mining cryptocurrencies on mining pools. By enabling a transparent system, Bitdeer has set itself apart as one of the few legitimate cloud mining platforms.
Likewise, it adopts a system that pays the revenue generated from mining activities directly to the users’ wallet addresses. In other words, Bitdeer does not act as an intermediary between mining pools and its users when it comes to payment. This system reduces the possibilities for unnecessary withdrawal delays and threats arising from non-custodial-based services.
The platform launched its first mobile app in 2020. Bitdeer stated that the launch of its mobile app will allow users to monitor and operate their accounts on-the-go. Users can buy new plans and pay for electricity via the mobile app as well as track active plans and switch between mining pools.
On March 4, 2021, the company announced that it will henceforth operate as a subsidiary of Bitdeer Group, which is also the parent company of Mining++, a smart mining platform. The announcement revealed that this organizational reshuffle looks to establish Bitdeer Group as a well-rounded mining ecosystem.
Interestingly, the Bitdeer website comes with a calculator designed to help miners to predict their future earnings, based on their chosen service plan. This initiative gives users an idea of what to expect from their mining venture. Also, the site features a comprehensively compiled FAQ page that explains technical processes.
What Are the Pros and Cons of Bitdeer?
Having explored the operations of this company, it is imperative to highlight its strengths and weaknesses.