In mid-September the developers of the GoMining app launched Miner Wars, a mode that gamifies Bitcoin mining. Since then, about 25,000 users have joined, making in-game purchases of more than $500,000 using the GOMINING utility token.
We spoke with GoMining CEO Mark Zalan about democratising mining through NFTs and the growing interest in Bitcoin-based DeFi.
ForkLog: Hello, Mark! In an interview with TON Foundation you said the GoMining team has been mining since 2017, and in 2021 presented NFTs tied to the hashrate of real devices. Why did you choose this direction?
Mark Zalan: Hello! We see mining as part of a broader Web3 ecosystem accessible to all, not as a separate physical industry, which is how it seems to many today.
GoMining’s staff are Bitcoin maximalists. We do not just believe in Bitcoin; we actively use innovation to make its production more democratic. That is why we launched mining NFTs, the GOMINING utility token and the game Miner Wars to gamify what is, from a user’s point of view, a fairly conservative process.
ForkLog: Who came up with the idea of digital miners?
Mark Zalan: It is a collective idea at GoMining. We watched halvings push out solo miners and decided to give them the most convenient tools possible to mine the hardest money in history. NFTs, which were gaining popularity, proved the right technology to realise this vision.
Much has changed in the market since, but the popularity of our digital miners keeps growing. It is a strong use case where NFTs have a clear function.
ForkLog: Did the 2024 halving affect your business?
Mark Zalan: Of course—it reduced revenues for all miners. We tried to soften the impact for clients by increasing the maximum service discount for miners to 20% and introducing Miner Wars, which offers additional strategic options and chances to win a block for clients running smaller, less powerful and less energy‑efficient mining farms.
ForkLog: How profitable is mining at today’s price of digital gold?
Mark Zalan: Mining has many variables; it is a highly volatile environment. We see very strong macro indicators for the Bitcoin price, which surged after the US elections. Our task is to help people extract more from this bull run.
ForkLog: What advantages do GoMining’s NFTs have compared with traditional digital-gold mining?
Mark Zalan: Mining has long been out of reach for ordinary Bitcoin users because of equipment costs and the complexity of setup and maintenance.
Digital miners are far simpler and more convenient. They let you launch your own farm without having to place it anywhere. You also get mutable NFTs: upgrading or selling them takes just a few clicks.
Consider this: the cost of energy for GoMining clients is around $0.05. It can be cut by 20% if you use the GOMINING token. In essence, that is a wholesale price without retail delivery and maintenance mark-ups: you just download the app and make a few clicks. We see this as the future of mining.
In addition, you automatically enter an entire ecosystem in which, beyond the miners themselves, there is a utility token, a game and a secondary market for buying and selling NFTs.
ForkLog: Isn’t it easier to buy Bitcoin on an exchange?
Mark Zalan: Mining is, in fact, a call option on Bitcoin. Imagine BTC at $100,000. The average cost of production with the maximum discount through GoMining may be as low as $30,000. Anything above cost is your potential profit.
If, like us, you are optimistic about the future of digital gold, then mining is a long-term, strategic and potentially more profitable approach to Bitcoin.
Besides, as I mentioned above, holders of digital miners gain access to our ecosystem, which has huge growth potential and is underpinned by strong tokenomics. We consider GOMINING one of the most successful examples of a utility token in the crypto market.
ForkLog: Recently, fees on the Bitcoin network have stayed rather low. Spikes in activity linked to Ordinals or Babylon have been episodic. Miners still receive most of their income from the block subsidy. Do you think Bitcoin-based DeFi will change this?
Mark Zalan: We believe the future of Bitcoin lies with BitFi. We recently returned from Bitcoin Amsterdam, where we presented a new project — the GoBTC Foundation, an accelerator and launchpad for projects on the network of the first cryptocurrency.
We held a pitch day where six startups presented their projects to judges. There was not a free seat in the hall — the community is very interested!
GoMining is closely watching activity in the segment and wants to give developers more opportunities to launch their projects. This will benefit the Bitcoin network, and therefore miners, who will receive additional income from on-chain transactions.
The latter lose motivation to expand their businesses with each new halving. For example, public mining companies in North America are increasingly talking about AI/HPC. As Bitcoin maximalists we choose a more native and long-term plan. The GoBTC Foundation is exactly about that. We will reveal more details soon — there is much to come.
ForkLog: Has the approval of Bitcoin ETFs affected the mining industry?
Mark Zalan: Absolutely. We speak with regulators around the world and see how their attitude to Bitcoin is changing. It is becoming a part of global finance that cannot be ignored. This helps the industry develop and has a positive impact on the economies of countries where miners are active.
The longer we are in this industry, the more we believe in Bitcoin. It is amazing that this feeling has no limit!