Cryptoeconomics (a neologism composed of two words: “Cryptography” and “Economics”), is a very new field, triggered in 2009 by Satoshi's adding economic incentives to P2P systems (bitcoin), a major change that will likely revolutionise commerce as we know it today.
“[Cryptoeconomics is a] formal discipline that studies protocols that govern the production, distribution, and consumption of goods and services in a decentralized digital economy. Cryptoeconomics is a practical science that focuses on the design and characterization of these protocols.”
You're most likely familiar with most of the terms we will touch on: Cryptocurrencies, Bitcoin, crypto-mining, ICOs (Initial Coin Offerings)... However, if you are new to the topic or if you just need to brush up, refresh your memory by referring to the links above.
Although originally aimed at the traditional datacenter and Edge Computing markets, Submer triggered huge interest from crypto-miners the world over to address issues with cooling, housing, noise and modularity. We met this demand by easily adapting our SmartPod for GPUs and ASICs. We call it the CryptoPod. Our CryptoPod helps crypto-miners achieve a quicker ROI - Return On Invest, addressing key frequently forgotten factors (cooling, housing, noise, modularity and other not so obvious benefits of immersion cooling). The CryptoPod helps reduce the environmental impact of crypto-mining (a frequent criticism of crypto-mining) and in certain cases enables the re-use of heat generated for heating buildings and water.
To better understand the principle at the basis of the economics of crypto-mining, let's consider the following variables:
This series of articles endeavours to explore and explain the economics of mining cryptocurrencies, focusing on some important aspects of the crypto-mining and explaining how the Submer solution can help you navigate some of the variables you will face should you decide to start crypto-mining.