Most recent update: [ August 11th, 2022]
No securities regulatory authority has expressed an opinion about the Crypto Contracts or GMT, made available on the VirgoCX Platform, including an opinion that GMT is not itself a security and/or derivative.
Bitcoin mining can be expensive because of high infrastructure costs. Therefore, small investors and individuals find purchasing bitcoins easier than mining them. GMT tokens make it comparatively more accessible for investors to participate in crypto mining without directly getting involved in the mining process. This post explains how it is possible.
Mining bitcoin takes a considerable amount of time, effort, and money. It requires massive infrastructure today and enormous computing capacity. The enormous computing power and electricity involved in mining bitcoins make it an extensive project only affordable by large-scale miners and large establishments. Hence, the most straightforward method for the general investor to obtain bitcoin is to purchase it.
However, instead of a one-off purchase, if you participate in a mining project like GMT (GoMining Token), you will receive continuous Bitcoin benefits every day. You are only required to spend a fixed amount, and someone else will take care of the entire mining, infrastructure, and maintenance requirements and issues. Thus, GMT offers you a comparatively easier and more beneficial method to mine bitcoin.
What is GMT?
GMT or GoMining Token is an initiative involving extensive Bitcoin (BTC) mining infrastructure. The GMT mining infrastructure has a fleet of devices at its core with a total security power of 500,000 TH (Terahashes) and an equipment hash rate of 535,955 TH/s. One GMT is equivalent to 0.001,743 TH.
It is a collaborative project wherein anyone can participate in the mining process and earn bitcoins even without needing any computational device or spending time getting involved in the mining process. Users only need to purchase GMT tokens to become a part of the mining project and earn bitcoins. Anyone from beginners to professionals can participate in the GMT project. They will receive the purchased coins at their ETH or BSC address, and the mining income will get transferred to their BTC address. There are currently around 16,070 GMT token holders.
How to Obtain GMT Token
Anyone can easily obtain GMT tokens as per their requirement using any of the following two options:
- Through the GMT website: You can go to the GMT website, http://gmt.io, and use the 'crypto to crypto' scheme to purchase GMT tokens with BTC, ETH, or USDT. The tokens will be available at the market price. You can view the number of tokens you can purchase in the account.
- Through exchanges: DEXs (Decentralized exchanges) and CEXs (Centralized exchanges) are other options for you to purchase GMT tokens. The price will depend on the exchange quotes.
How Does The GMT Token Work?
The GMT project has all the infrastructure and power for Bitcoin mining, always running. When users join the project, they create accounts and purchase GMT tokens. Each token represents a part of the value and power of the mining infrastructure. The more GMT tokens you buy, the more the number of shares you have in the project. The benefits from mining are distributed among the users who receive BTC rewards in their wallets daily. You can withdraw your involvement in the project by transferring it to another user by selling your GMT tokens anytime. Here's the entire process in brief:
- The user purchases GMT tokens.
- They then decide to use the tokens for bitcoin mining.
- The user registers on the GMT website gmt.io and verifies the addresses of their GMT and Bitcoin wallets.
- Twenty-four hours after the verification, the mining power of the purchased GMT tokens is added to the mining pool.
- The user receives a reward every day proportionate to the mining power of their GMT tokens in Bitcoin.
- The user can use the earned bitcoin remuneration at their discretion.
Advantages of GMT Over Traditional BTC Mining
The GMT token offers its users advantages on the following fronts compared to the traditional mining process.
- Initial capital requirement and delay: You will need all the infrastructure and devices and the necessary settings and connections to start mining in the case of traditional bitcoin mining. The entire setup can take a huge amount of time and monetary resources. On the other hand, by buying GMT tokens, your mining process begins in 24 hours, and you don't need to bear any additional costs or arrange for infrastructure.
- Running and maintenance: If you run your infrastructure for mining, you will have to bear the responsibility of its operations and all costs, including maintenance. However, if you opt for GMT tokens, you only pay the price of the tokens and nothing else. Thus, you have zero maintenance costs.
- Scaling: In the traditional mining method, you will need to include extra hardware and bear the additional running costs if you need to increase the power and capacity of mining. With GMT, you don't need to bother about any such expenses or arrangements. With the continuous burning of parts of new tokens, each token acquires increased power.
How Can GMT Token Revolutionize Crypto Trading?
One of the primary challenges in crypto is its mining. GMT token makes it convenient for all investors to mine the most significant cryptocurrency of all, Bitcoin, using easy provisions. Furthermore, it helps reduce the individual's Bitcoin mining cost, encouraging them to acquire Bitcoin and boost crypto trading considerably.
Risks Associated With GMT Tokens
- Risks of Mining Unprofitability – BTC is a volatile crypto. Hence, any mining activity involving BTC has the mining unprofitability risk. It happens when the cost of electricity consumed is higher than the minted coin’s value.
- Financial Risk – All cryptocurrencies carry financial risk because of their price volatility. GMT is associated with BTC, one of the most volatile cryptos.
- Lack of knowledge – GMT operations are highly sophisticated. Hence, users not possessing the requisite knowledge can find it challenging to use GMT.
Before listing GMT on the VirgoCX Platform, VirgoCX performed due diligence on GMT and determined that GMT is unlikely to be a security or derivative under Canadian securities legislation. VirgoCX’s analysis includes reviewing publicly available information on the following:
- The creation, governance, and location of GMT and/or its primary development team;
- The supply, demand, maturity and liquidity of GMT; and
- Legal and regulatory risks associated with GMT.
Statutory Rights under Securities Legislation
VirgoCX is offering Crypto Contracts on crypto assets in reliance on a prospectus exemption contained in the exemptive relief decision Re VirgoCX Inc. dated May 30, 2022 (the Decision). Please be aware that the statutory rights in section 130.1 of the Securities Act (Ontario), and, if applicable, similar statutory rights under the securities legislation of each other province and territory in Canada, do not apply in respect of the Crypto Fact Sheet to the extent a Crypto Contract is distributed under the prospectus relief in the Decision.
Kurko, M. (2022, May 5). Best Bitcoin Mining Software. Investopedia. https://www.investopedia.com/best-bitcoin-mining-software-5095403
Kim, E. (2021, September 7). Bitcoin mining consumes 0.5% of all electricity used globally and 7 times Google's total usage, new report says. Business Insider India.
BTC Rewards FAQ.