GoMining Platform (GMT) — How it works and why I invested.

Before we begin, I want to provide this disclaimer. I am not a financial advisor, I have no incentive or ties to GoMining, and you should always do your own research (DYOR) before investing and the below is my story and experience with the GoMining platform.

Dedication: I was inspired to write this article by my wife who always speaks her mind and shares her perspective of the world.

If you like this article, be sure to follow me and like this post. Thanks!

I am a tech guy, I’ve spent the last 30+ years in tech and the last 12 years in the gaming industry. I’m not rich in the sense that I have a lot of money to play around with. But I am well off and I have plenty to be thankful for. I had spent a lot of time in the crypto space looking for the rare gem that would make me some money. I think many of us are doing the same. I’ve tried so many different things and a lot of them result in spending money and receiving very little return back or just flat out losing money.

Anyone that is dabbling in crypto may be feeling some of the same pain that I’ve experienced. I’ve spent a lot of money on fee’s, wondering was spending $15 on the transaction really worth it? I’ve done data mining, staking, NFT trading and I’ve even tried to make my own crypto game to see if I could strike it rich. I wouldn’t say at all that I’ve been highly successful with any of these. But over the last two years, I’ve gained a lot of knowledge.

In my quest for profit, I did come across GoMining. It’s a platform in which you can buy an NFT and it represents a sliver of a bitcoin mining operation. Mining bitcoin is complicated for the average person. I’ve had my own hardware miners. I’ve mined all sorts of coins back in 2015. But it wasn’t easy to setup and my power bill went through the roof. The wife ultimately told me that we had to shut that down stat! So GoMining is a nice way to enjoy mining without having to know all the technical aspects.

This is how it works, you buy an NFT and let’s just say you buy the base model. This is going to cost you roughly $27.99 and it will produce a net reward of $0.04 per day.

But what does it mean Net rewards? Even though you do not have to deal with the technical aspects of mining, you still have to pay for it. So there is a formula that they use to calculate how much power each NFT cost. In addition they tack on some additional maintenance fees. The $0.04 cents that you receive, which is an estimate, is how much of it you will keep.

Is this true? Let’s check it!

One of the nice things about the GoMining platform is how transparent they are about what you are gaining, how you are gaining it and how they calculate fees.

I’ve taken their calculations and put them into my own google document for calculating fees. I will be sharing this document at the end of this article. As you can see, that if the SAT (Satoshi) reward is at 154 and I’ve got a 7% discount (which I think is the default) and at the current price of BTC we would in fact receive $0.04 net profit, which you can see on the last line of my calculator highlighted in green.

Reason 1 that I have confidence in investing in the platform. It’s important, for me at least, to know exactly what I would be earning and how. There are so many platforms out there that mask everything. Including staking platforms which you just have to take their word for it that you are getting the expected APR or APY that they are promising. If you can’t fact check it then it makes it very hard to feel confident that you are getting the value for the money you invest into it.

Before I began investing, it was also important to know who are these GoMining folks and why are they doing this. A good friend of mine was kind enough to point out that if they have all this TH and are able to make all this money and share the it with a community then why not keep it all to themselves?

So I set out on a mission to investigate some things further. Starting with the CEO of the company.

Mark Zalan is the CEO of GoMining. While I don’t know Mark at all, I can see that he has a pretty decent pedigree.

12 Years at GE where he worked his way up from Program Management (PM’s as they are called) to CIO ( Chief Information Officer ) of GE’s presence in Moscow.

He spent a few years after that going it on his own with a Mobile Business and an advisor to a venture capital fund. This is an important detail. When you get in a venture capital circles ( In my opinion ) it can open doors and access to funding later down the road.

The next several years was CEO-ing of multiple different companies, I’ll let you DYOR on his experience, but it lead him to being the CEO of GoMining.

So why investigate the CEO? I would answer that question with one word. Accountability! Someone doing something as big as GoMining there has to be someone accountable and it can’t be a nobody in a garage that has zero experience running a corporation. Mark has plenty of experience to be the CEO of GoMining and experience building teams.

So Reason 2, having a qualified CEO and someone that is staking their reputation behind running an operation like GoMining provides additional confidence that this platform is here to stay unless something catastrophic happens that is unforeseen. I’m not saying that can’t happen, it sure can. But with any investment there are risks and this is one of them. I personally rank this fairly low on the risk factor.

Catastrophe strikes to take down GMT headline?

I just don’t see that in the near future.

I don’t think I ever found an answer to “why they are doing this, if they could keep it all”. I guess that would be a mystery question to ask the CEO if I ever get to meet him one day!

Let’s move on to more of the guts of GoMining…

Now that I felt some comfort, well at least enough to spend $27.99 on an NFT to get 1 TH (Terahash) how is this going to make money?

Well we know that 1 TH equates to roughly $0.04 cents per day, we can say that we will be earning $1.2 per month from that NFT … Right?

Well it’s not quite that simple, if we were to leave that in there and let it accumulate then it would take 23 1/2 months to just break even. Well that doesn’t seem like it’s worth it. Furthermore, to really get bitcoin liquidated there are fees involved in transferring Bitcoin to an exchange or whatever mechanism you have to cash out. So it’s really like 25 to 27 months to ROI (Return on Investment).

So the big question is how do you make GoMining profitable?

I know this might sound ridiculous and at small scale like 1 NFT and 1 TH it might not make a ton of sense. But I have to refer to mindset. We have to think long term and not short term gains. If you are looking for a short term “Get Rich Quick” turn-a-round then GoMining might not be for you.

However, if you are interested in a long term, lifestyle change then keep reading!

The mindset is reinvestment and like I said at small scale this doesn’t make a lot of sense, but it still works.

If you take a penny and double the amount every day for a year (Chat GPT)

What’s funny about this is “This amount is astronomically large, far beyond any practical financial scenario”

That is true! It’s not reasonable to think that you can double the amount every day for a year. But it is the fundamental principle of reinvestment.

I want to grow my money so that in years to come I have a passive revenue stream that will be fruitful and augment my lifestyle.

With the right strategy that fits my financial situation, I believe GoMining can do that for me.

So what is the strategy?

If I take that $1.2 per month and save it up for 2 years I can buy another NFT. Then in another 2 years I can buy 2 NFTs, and in another 2 years I can buy 4 NFT’s and then in another 2 years I can buy 8 NFTs.

That is not practical at small scale because I’ll be dead before I make any amount of money that would be worth it. But the mindset it right.

So let’s take a look at my investment and how I plan to grow it. I’ll admit that it’s still a bit slow and at some point you want to not reinvest and take profit. There are also other factors to consider which I’m not going to go into a lot of detail on like Halving, but I assure you that I’ve accounted for it.

So let’s start of by exposing another feature of GoMining that really changes the game. Discounts!

GoMining introduced a semi-game model where you can get additional discounts on the fees for power and service. There is a button you have to press in the game each day (every 24hrs). After 10 clicks you get an additional 3% off of fees.

There are also discounts for Solo Mining which range from 1.99% to 3% based on the voters of the system. These voters gained voting rights by staking GMT token in their tokenomics section. Every week this amount changes but it does provide benefit to solo miners.

I will only say one thing on Solo mining vs. Pool mining. Stay away from pool mining if you want a predictable revenue model. Pool mining in my opinion is gambling. While fun, if that is what you are into, it does not align with any of my strategies for building a revenue stream.

There is also a discount for what tier your mining farm is. I’m at level 6 and my discount is at 1.5%, but at 5000 TH you can get up to 6%.

Lastly you can get discounts for paying all the fees in GMT token instead of it coming out of your bitcoin. You get a 10% discount just for this and as you can see below this greatly improves my percentage kept of BTC Generated from my mining operation.

I currently have 171.96 TH. We’ll get into power savings in a little bit, but my mean power is at 29.53 Energy Efficiency. To get to this level, if I were to outright pay for what I have here it would roughly cost me $6500 investment to just buy what I have.

But I only paid $3500! Why? Reinvestment!

Over the past few months, I’ve been buying more TH with the output I get each week. I put in enough so that each week I’m able to buy more TH or power upgrades with the money that I’m earning.

My net profit is giving me $252.35 per month after fees, and I’m able to reinvest 57% of what I gross earn and put it back into growth. If I made no reinvestment from this point forward, I would be earning about $3000 a year. This means that my ROI is dropping and I’m now at 1.2 years until I hit ROI. That is much better than 2.6 years as we previously examined.

Power is important, especially with the Halving coming. If you don’t know what the halving is. You can google it and read up on it.

What is a Bitcoin halving? A halving — sometimes referred to as halvening — is a planned reduction in the rewards miners receive (the term is mentioned in Bitcoin’s code). Halvings happen once every four years or so — more precisely, every 210,000 blocks of transactions

Power is used to calculate fees on GoMining.

Calculation for Electricity: 0.05 * 24 * 20 / 0.3935 / 1000 - 17.05%
Calculation for Service: 0.0089 / 0.3935 - 17.05%

Electricity Calculation is:
0.05 (kilowatt hours) — This is how much you pay for electricity per kilowatt hour
24 — Hours in a day
EE — Energy Efficiency — This is the energy efficiency value of the NFT. When you buy one the base value is 35. Above is 20, which means I’ve upgraded it to max power efficiency.
0.3935 — Price of GMT token — This is the current price at the time of my last reward of GMT token. The higher the token price is, the less you pay in fees.
Divide By 1000 — I’m honestly not sure why this is here, but it’s part of their calculation.
17.05% — This is the amount of my discount at the time of writing this article. If you take the entire calculation and multiply it by 17.05% and subtract that from the total of your calculation that becomes what your Electricity cost is.

Service Fees are more simple, it’s the const 0.0089, this doesn’t ever seem to change divided by the GMT token price, less the discount.

So the higher discount you’ve earned the the more Bitcoin you can keep and the more you can reinvest into your mining farm.

Circling back to the mindset of reinvestment, I’ve modeled out in my spreadsheet to show how my income grows but also how the halving kicks in and how it affects profitability.

The halving will drastically reduce the output of how much BTC you earn, but don’t fret. With the right power upgrades you can strike a decent balance of profitability. You can see below that if the expected price of BTC goes up after the halving ( total speculation! ) and you decrease your energy efficiency then you are still keeping 36.5% of the BTC generated after fees. That still is not bad and it’s something we all can work with.

So in my spreadsheet I’ve reflected that and I can see that my revenue dips, but then can still adequately grow.

It is important to prove this out at small scale first as it reduces my committed financial risk. Once comfortable that the model is holding true, then it can be scaled up.

So let’s take a look at what this could look like scaled up!

With an initial investment of $25.8k and a sizeable reinvestment strategy, we can get our revenue output to $1409 per month.

You would reach ROI in January 2026, that’s 2 years and then for the next 2 years you earn $17k annually assuming no reinvestment after 2 years.

It is also worth a mention that you own these NFT’s and as long as the platform is alive they also have value. So if you want to quit and liquidate, there is a marketplace and a demand for the NFTs. They might be hard to sell, but for the right liquidation price it can be done. My 171 TH worth of NFT’s I’ve valued at about $6500 which is more than what I paid in. So that also feels nice to me.

There are also Tax implications with earning money & Crypto, so please get Tax advice from a professional!

So here are my conclusions.

• GoMining is a legitimate mining platform and an opportunity worth seriously looking at.
• If you use the right strategy that fits your own needs and desires you can make money from it, but it takes time.
• GoMining is NOT for EVERYONE, it is for those that are patient and want a long term strategy to bring passive income.
• Always DYOR (Do your own research) and validate that with factual numbers.
• Reduce risk by starting small before you invest big ( this is my opinion, not financial advice )

There are more aspects to the GoMining platform and they continue to add features and ways for you to earn more.

You can join the investment fun by going to GMT.io
As promised, here is a link to my spreadsheet

Again, I want to emphasize that I am not a financial advisor, I’m not even great at making money. But this has been my experience with GoMining and what my journey has been. Always do your own research, it is important!