Frequently asked Questions
Why do you sell mining contracts rather than using all your servers yourself?
This is the question we hear the most and also the one we can answer the easiest. In short, economy of scale. This basically means a proportionate saving in costs gained by an increased level of production. We do use our own funds to mine ourselves. We believe in Zcash and we think it is a fantastic investment. In fact, Jonathan has sold his Bitcoins and Laszlo is currently selling a property to be able to invest more into Zcash mining. Many of our friends and family have invested with us and we are strong advocates of Zcash mining. We would not be putting all of our energy into this company, would we not believe in Zcash. Of course, we could buy all the hardware we can afford and mine ourselves, though we would be limited by our financial abilities. The more contracts we sell the more hardware, and the better hardware, we can purchase. This benefits all our customers as well as ourselves. Then there is TCO, or total cost of ownership. For example, if you buy electricity as a household you pay considerably more than a corporate client. And the more electricity you consume as a corporate client, the better electricity rates you can get. As with so many other products, if you buy more, you get a better price. And this is why we sell mining contracts. Economy of scale is a beautiful aspect of business that truly creates win-win situations.
Why should I invest in Zcash mining rather than other cryptocurrencies?
We think this is a very personal question. If you feel that Bitcoin will rise further in value, then perhaps Bitcoin is the right choice. If you feel that any other cryptocurrency is the better choice, then perhaps you should invest in that digital asset. We feel Zcash has huge potential. Bitcoin has created this market and was an unbelievable opportunity when it went from less than 0.01 USD per coin in 2010 to over 1,200 USD in 2013, down to around 200 USD in 2015, and then back again to over 900 USD in 2016. Will it continue to grow by several 100 percent? We doubt that very much. There are many reasons why we believe Zcash is going to be the leading cryptocurrency. The main reason, in our opinion, is the incredibly strong development team that enjoys raving reviews and enthusiastic support from Silicon Valley investors and technology experts. We believe Zcash will provide the largest returns and this is why we have decided to specialize in Zcash mining.
How much will I earn over my contract period?
This is a difficult question to answer as the value of the underlying asset Zcash is outside of our control. Mining Zcash is estimated to require 20 - 25 H/s over a year to yield 1 coin. With one of our 2 USD per H/s contracts you are basically paying 40 - 50 USD per coin. Your return then depends on the value of Zcash when you sell it. Leading analysts have published predictions that Zcash is expected to be valued at 200 USD and above within a year. Of course, predictions are no guarantees. However, looking at the value of Bitcoin (over 900 USD in December 2016) and the fact that Zcash has the strongest development team with the strongest backing amongst all cryptocurrencies, we believe Zcash is in a good position to become the leader in the cryptocurrency world. Speaking of development team, nobody even knows who invented Bitcoin. And then there is another reason why Zcash has a brighter future ahead. Bitcoin promised to offer anonymity, which we now know was not achieved. Zcash, on the other hand, is fully encrypted in every aspect of the transaction.
Can I get paid in USD rather than receiving Zcash rewards?
For various reasons, this is not something we will be offering. If we were to pay you returns in USD, we would in fact be an investment provider and would have to be regulated, as any financial service provider. This is very challenging when offering services to a global market, because investment regulations differ from country to country. What we do offer is a technology service. We lease processing power to you that returns you Zcash as part of computational services your leased mining rig is providing to the Zcash network. This is an important difference, as the rewards do not come from us. It is a straight-forward offering that complies with global laws. What you do with the digital assets you receive as rewards is then up to you. Also, would we be selling your Zcash on your behalf and pay you every day in USD at the current exchange rate, we would inevitable run into difficult situations. Within a trading day, it is not unusual for any asset to swing several percentage points in either direction. We do not want to be in a position where a customer feels upset because we sold his assets minutes before the value went up.
Where can I use Zcash and can I exchange Zcash into money?
Zcash is using the same underlying technology as Bitcoin and as such is being adopted by service providers quicker than any other digital currency. Although this cryptocurrency has only been around since the end of October 2016, the adoption rate is remarkable. Over a billion dollars have been invested in Bitcoin related services since 2013 and Zcash is benefiting from these investments. Zcash is being actively traded at various exchanges, with 24h trading volume exceeding 5 Million USD within less than 2 months of its launch. Zcash can be sold at various digital exchanges around the world, including Kraken and Poloniex. We expect that you will soon be able to use Zcash for everyday purchases as well as through debit cards, just as you can already use Bitcoin.
Is my investment in Zcash mining with your company secure?
We use the latest security protocols and encrypt all customer data. No data will ever be shared and no data is available to parties outside GPU Mining. We have an established web hosting business in Quebec, Canada, that has been enjoying a positive reputation for over 10 years. We know what we are doing and we always put our customers first. Notably, we have been focusing on Zcash from the start and have created our entire offering around mining exclusively the cryptocurrency Zcash. This has various advantages for you. For example, our hardware and software is tuned specifically for Zcash mining. Our business is fully insured and any operational difficulties will not impact your ability to mine Zcash.