China became the most prominent player in the bitcoin economy. The country is the second largest economy on earth, so its citizens were bound to have a prominent role in any case. Nevertheless the degree to which bitcoin mining is concentrated in China, does pose a risk to the whole network. The original idea behind bitcoin, was to have a highly distributed network, but it simply became profitable for Chinese miners to centralize about 65% of it. Now, it seems that the Giga Watt WTT Token will succeed in making the business case for decentralization.
The idea behind Giga Watt is simple. Users buy WTT tokens, which translate into an investment in a mining hosting operation in the US – more precisely in Wenatchee, Washington State. This guarantees that the Giga Watt initiative has enough funds to set up mining pods within their farm. In return, investors get a monthly dividend proportional to the amount of tokens they hold, and the Bitcoin network can host more mining capacity outside China. The farm can also host mining on other cryptocurrency networks.
Acquiring WTT tokens is straight forward. Giga Watt will launch the WTT Token initial coin offering on February 15th, 2017. The token is structured such that one token translates directly into 1 watt of capacity at the data center. The returns for each token according to their calculator are roughly $0.51 US Dollars per token per year. This means that investors will get a return on their investments roughly 2 years after they invest, depending on when they acquire their tokens.
The following is the ICO structure:
On top of the returns, it is encouraging to know that Bitmain is supporting the project. All the equipment will enjoy full support from Bitmain which means that the farm will not face delays due to equipment repair or other support issues. Giga Watt will be able to offer full on-site maintenance to the miners that lease its pods at the farm.
Update: It seems that Bitmain does NOT support the WTT project at all. We initially reported that Giga Watt had support from Bitmain, based on the information on their website. Now we know that is not the case. We read the official response from Bitmain to Giga Watt’s claim after one of our readers pointed out that Bitmain demanded the removal of its name from the WTT project’s website. Bitmain’s blog issued an official request through its blog. Click here to read it.
This seems like a great idea for people who want to invest in bitcoin and other cryptocurrencies but want to reduce their exposure to the volatility in these markets. Investors will basically purchase energy capacity that Giga Watt will re-sell to mining companies for a profit. Hopefully, the project will succeed and the farm will expand enough to bring profits to many investors and simultaneously decentralize bitcoin mining.
Click here to read more about the Giga Watt WTT Token initiative
Investors bear all the responsibility over the outcome of any investment made on the basis of the information presented by this article. Bitcoin Chaser and the authors of this article have no intention of encouraging investment in WTT tokens nor are they endorsing the project in any way.