Node, a plug & play cryptocurrency miner, promises to mine you Bitcoin, Ether, Binance and more, with little effort. And it won’t cost you more than its worth in electricity.
Many are put off of crypto mining due to the cost and complexity of building a rig, as well as high energy consumption that eats away at potential profits.
However, Node, created by blockchain startup Incognito, is “not a typical mining machine”. The device, which is “smaller than an Alexa” just needs to be plugged in in order to start mining.
The user must download the Incognito Wallet to start earning, which will allow them to start and pause the miner, as well as keep track of their earnings.
Incognito estimates that the Node will generate approximately $25/month in cryptocurrencies.
Unlike other miners, those profits won’t be added on to your next energy bill. Incognito estimates that Node uses 1.5 kWh per day, equivalent to approximately $0.08 worth of energy in the United States.
The device, according to its creators, is “more energy-efficient than a toaster” thanks to Incognito’s next-generation, energy-efficient blockchain, the Incognito Chain.
Cryptocurrencies like Bitcoin use a Proof of Work algorithm. Proof of Work sees the blockchain set increasingly difficult algorithmic puzzles for miners to crack. Different mining systems then fight to solve the puzzle first, using increasingly high amounts of energy to do so.
However, the Incognito Chain uses a Proof of Stake method. Rather than using computational power to mine, this method sees the miner stake (like placing a deposit) a certain amount of cryptocurrency to validate transactions.
Node will go on sale from Tuesday, 8 October, at an early bird price of $199. The device is set to retail at $400.
Is the Incognito Node as good as it sounds?
One Node will make you $25 a month. Four will make you $100 dollars, and 40 will make you $1,000. At $199, it would only take eight months to earn back your investment, and anything after that would be thousands of dollars in your pocket.
However, as Incognito’s website states, “It’s hard to give an exact answer” how much the device will earn you, because it is dependent on the value of the cryptocurrency that it is being used to mine.
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According to Decrypt, rather than mining cryptocurrencies like Bitcoin, the reward for using Node will be the interest generated on stakes. These will be in the form tokens issued by the Incognito blockchain, the value of which is undetermined.
So what does the cryptocurrency community think? According to users on subreddit r/Buttcoin, it’s probably (or definitely) too good to be true.