Cryptocurrency is a computer-generated monetary system. It’s created by specialized, powerful computers called “miners,” which compete mathematically to secure “transactions.” The transactions are bundled into a “block,” which the cryptocurrency miner digitally verifies to assure the validity of all transactions. The miner computes a “cryptographic hash,” a computerized method to ensure the block’s validity and prevent invalid block construction.
HOW CRYPTOCURRENCY WORKS
Blocks are accumulated and accounted for in the blockchain, functioning as digital ledgers. Miners are rewarded for their transactions with a set amount of cryptocurrency. Blockchain ledgers are “open” for all participants to see, which is a way to assure security as the system polices itself. This mined blockchain data becomes the medium of exchange called cryptocurrency, which can be in various different monetary forms, ranging from Bitcoins to Ethereum to Litecoin to Zcash.
Cryptocurrency is also controlled by limiting it to a finite number of available cryptocoins. This entirely open, yet self-regulated system, allows secure, easy, digital transactions without the need for processing institutions and fees, as with banks and credit cards.
Note: These calculators help you estimate mining results. Please note that this changes daily based on coin price and mining difficulty level. Today’s returns do not guarantee future returns. The calculators are managed by an external entity. Compute North takes no responsibility for errors in their calculations.
NEW TO CRYPTO? Download our GET STARTED guide.
Use these links to set up accounts and monitor your account and progress.
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FREQUENTLY ASKED QUESTIONS
What are the long-term projections for cryptocurrency?
The cryptocurrency market is projected to grow ten-fold by 2025. This decentralized form of money does not require a processor like a bank or credit card company (and their fees), offering major benefits over fiat currency or credit systems. Values may fluctuate, but they have continued to generate excellent value returns.
What are the advantages of cryptocurrency over fiat money or a credit card?
Because the cryptocurrency system is a “peer-to-peer” transaction, there is no middle institution involved, like a bank or credit card company, which means no third-party fees. You’re also assured of privacy since there is no way for the seller and purchaser to identify one another. And you aren’t charged any account fee just for keeping your currency in your digital ledger.
Why are there different types of cryptocurrency, like Bitcoin, Litecoin and Ethereum?
Some ingenious individuals have created their own cryptocurrency systems that may vary in how transactions are verified, the degree of security or privacy, international acceptance and more. Retailers may prefer currencies with faster verifications (some can take ten minutes to verify a transaction). Individuals may prefer the more universally accepted currencies like Bitcoin.
What cryptocurrency coins are considered by Compute North?
Initially, we see the potential for the following: Bitcoin, Litecoin, Zcash, Ethereum, Dash, and Monero (XMR). However, we are constantly evaluating other coins.
How do I collect, trade and spend cryptocurrency?
Compute North provides you with a digital ledger, which can reside with your smartphone, tablet or computer. Any results are directly deposited into your ledger. More and more retailers are accepting cryptocurrency, and making a purchase is as a simple as an online payment, as you would with a credit card, but without any fees involved. There are also online transaction centers where you can cash cryptocurrencies in for U.S. currency.
What type of computing equipment does Compute North operate?
Compute North partners with the most well-known brands including Bitmain, Canaan, AMD, Nvidia, iBeLink, and more, for the most advanced mining equipment available today.
How does Compute North economize on energy consumption?
Crypto mining computers require significant energy. Compute North has established facilities where energy costs are low. We also partner with renewable energy companies to conserve energy and lower costs. Our data centers are in geographic locations where the innovative use of ambient cooling technologies further reduce costs for our mining operations.
What is proof-of-work?
Proof of work is a protocol with the main objective of deterring cyber-attacks. In order for a miner to have a block accepted by the network, it must complete a proof-of-work.
What is cryptocurrency’s legal status?
Cryptocurrency is legal in the U.S., though other countries like Russia and Argentina have restrictions on foreign currencies. The United States Treasury Department has issued non-binding guidance on how it perceives certain cryptocurrency activities. FinCEN (Financial Crimes Enforcement Network) does not consider cryptocurrency “money transmitters,” as it relates to money laundering and terrorist financing.
Is cryptocurrency taxed?
Different jurisdictions have different regulations regarding payrolls, income, sales, capital gains and other aspects involving cryptocurrency. Investors are responsible for reporting and dealing with taxes in their local jurisdiction.
How do I purchase Compute North’s services and products?
The “Get Mining” page of this website features three offerings and their fees:
- Hashpower – We mine coins on your behalf;
- Colocation – You can rent space and equipment at one of our facilities to do your own crypto mining;
- Hardware – You can purchase premium quality mining hardware.
Each of the three offering pages also continues with the forms to set up your account.
Our payment process is two-fold so you can begin mining right away and easily continue:
- Initial Payment: You may either mail a cashier’s check or wire payment through your banking institution. Colocation, however, simply requires full upfront setup fees and two months of service.
- Recurring Payments: (Excludes hardware purchases.) Payments for the 24-month contract period can be via ACH through your banking institution or by credit card.
Hash rates are subject to variability over time. Average expected variance is +/- 10% and will change based on the pool, specific hardware procured, and effects of the network. Compute North will do everything to optimize the hash rates to their optimal and stable rate, but cannot be responsible for the variance that can and will occur.
Cryptocurrencies have inherent risks for investors. Cryptocurrencies are highly volatile and can experience tremendous gains or losses in just one day. You should not invest more than you are willing to lose. Since cryptocurrencies are unregulated and decentralized, their value cannot be insured by any legal entities. Returns can be impacted by new mining difficulties, fluctuating prices and exchange rates, technical failures, variances to hash rates, third-party actions or inactions, hardware obsolescence, and more. Any information provided by Compute North is subject to change and does not constitute financial, investment, trading or any other advice. Buying, selling and trading may not be suitable for all people and Compute North does not recommend buying, trading or investing in cryptocurrency. You should conduct your own due diligence and consult with a qualified financial advisor before any investment decision. You are responsible to determine and pay for any taxes related to cryptocurrency transactions. Compute North strives to ensure we provide accurate information, however, we do not take responsibility for any wrong or missing information.