After cryptocurrencies became globally popular following Bitcoin’s massive bull run in 2017, various businesses have emerged from that industry in order to make capital. While most ventures have been towards developing or launching a crypto exchange, many have taken the path of crypto mining.
Mining is an essential function for certain cryptocurrency such as Bitcoin and Ethereum, as it consists of validating transactions when users send crypto from one address to another. In simpler terms, crypto miners receive a fee for verifying the transaction, for example, each BTC blocked mined allows the miners to earn some BTC in block rewards(current block reward is 6.25 BTC).
Now, the Mining Industry is already in a very competitive market in the digital asset space.
Amidst big organizations such as NiceHash and Poolin, Summit Mining is bringing forward a unique take on crypto mining, where transparency and profitability are key virtues for the organization.
Although Summit Mining is not as huge as other major companies, its business module or working functionality is far more convenient. Unlike other organizations, it does not sell or rent out its machine to the users. Once every month, the organization adds new machines to their mining farms from their clients’ investments, and then, the profitability achieved from the collective machinery is shared with all existing clients. At the end of the month, the company distributes its profits generated by the machines to their list of investors, proportionally to their net investment.
Summit Mining does not guarantee fixed profitability to its clients and the ROIs have varied across different months, but in 2019, they were able to garner an average 11.89% ROI per month. They are committed to their transparent business module and motivated to ensure better returns on investment to their clients.
AMBCrypto recently sat down with Summit Mining CEO, Mathieu Vincent, to understand the organization’s beginning, vision, and the key objective for the future. The interview took place on 30th October 2020.
Q1. Good evening Matt! So according to Summit Mining’s website, your first interaction with cryptocurrency was back in 2017. When did you realize that crypto mining can become a business venture for you and your mining startup?
Before Summit Mining, I used to be a trader and I was trading professionally for a bank. So, I was already involved with the trading business, although I wasn’t trading with crypto assets at that moment. I was also involved with real estate, and I was generating rental income from properties and I started wondering if there was something similar with cryptocurrencies.
Then in 2019, I started trading with crypto-assets and I was beginning to wonder if there was a way to earn passive income from this industry without investing a lot of work-force or time, and I figured out that crypto mining was the way.
You buy some machines, or computers, plug them into the system, configure them with mining software, and you can receive consistent revenue every month. So that is a simple explanation of my introduction to crypto mining. While the business part itself was more difficult to set-up, this was my initial reflection point of starting a crypto mining firm.
Q2. Summit Mining’s first client was in 2019 while the organization was setting up mining farms in Russia and China. Was it all part of the part to start approaching clients after a year in establishment, or did you want to attract clients earlier than 2019?
So, initially, when I was mining for myself in 2017-2018, it was quite profitable for me, despite the drop in the crypto market in 2018. However, I started to move to buy some machines in Russia because the machines are cheaper there and the electricity is also cheaper. So even though I’m based in Europe, I didn’t start mining in Europe. I started to mine from Russia and that’s how I was able to make some profits.
Slowly, I expanded the number of machines I had, and last year in early 2019, I had about a hundred mining machines.
So at the beginning of the year, they were just my machines. Okay. There was no business, there was no partner, it was just me and my machines and I was mining on my own. But I kept telling my friends about it and they said, “Oh, that sounds interesting. Can I give you some money and you buy some machines for me?”
So that’s how it started. So I started to purchase more machines for my friends, with their money, and I started to manage machines on their own behalf. After successfully mining for some friends I thought maybe we can make a business out of it, like an official service with official company contracts, etc.
And little by little, we started to have a growing number of clients. And now we have 500 clients with the company, and that’s how it started and grew.
Q3. What are the key fundamentals and goals of Summit Mining? What sets the organization apart from other mining companies?
The key objective when we started mining, was to offer the best possible service. That was the only goal because I was doing it for my friends at first. So I wanted the best for them. I was doing my best to find the best prices for them, get the best deals, the best discounts, the cheapest electricity possible, or just in one word, the best possible service. And then, when we decided to open our services to a wider audience, we decided to maintain the same energy, keep the same rule, which meant doing our best for everyone.
Our honest interest is to mine as much money as possible for our customers because we get a commission on what you make for them. And that is a big difference between us and other services. If our clients make money, we make money. The majority of cloud mining services, they only sell some power, and whether or not you make money while they don’t really care much.
With Summit Mining, Users will receive the best returns on their investment that is not provided by any other service in the industry. The amount of money we make for our clients, users will not be able to make that much on individual mining or with other mining services.
It all comes down to our distribution. No particular investor is tied to one machine. If one machine breaks down on the mining farm, people will still make profits from other machines that are mining, as the company and clients make profits collectively and not, individually.
Q4. Summit Mining shifted its focus to community mining rather than switching to cloud mining in October 2019. Will you detail the difference between community and cloud mining?
As explained above, Cloud mining services are not bothered with making their users consistent incomes. You can check any organization that is conducting cloud mining, they are only profitable for themselves. Community mining is the complete opposite because it is thinking more about the clients than the organization.
With community mining, there is transparency between the users and the machines out there allotted for our clients. We share the profits accordingly, at the end of the month.
Another important difference between cloud mining and community mining services is that in cloud mining, users are offered a contract. It can be 3 months, 6 months, or a year, and at the end of the contract, it is goodbye. With community mining, you become a member of the organization because we are buying the machine from your capital. So there is no termination.
Q5. 2020 has been a difficult year for businesses around the world due to the COVID-19 Pandemic. So, what does the roadmap of Summit Mining look like in the future?
Summit Mining was actually not that affected during the pandemic. It was fine for us because once we have plugged in machines, they are running, with or without the virus breakout. We currently have machines in 10 different sites as well, so if something happens on one mining site, we shift our focus to another site or country. We are currently based in Russia, China, and the US, so we can switch between the different countries to try to find the best deal.
At the moment, the future objective is to keep mining irrespective of what happens. 2020 seems like a good year for the cryptocurrency market, and I am expecting a bullish breakout as well. We will keep mining so that our clients and the organization continue to profit collectively with each other.
For more information, please visit Summit Mining’s official website.
Disclaimer: This is a paid post and should not be considered as news/advice.