Grin is a security and privacy-focused cryptocurrency and has been successful in attracting the attention of cypherpunks across the world. However, one group has appeared in the picture which is mining on the Grin network, which is recently launched.
Dovey Wan of Primitive Ventures told the media that he has been witnessing the entire show today. It is probably the most costly prime block in history.
Many crypto experts and investors were closely observing the launch of the privacy-centered cryptocurrency. This currency is built using the technology named as mimblewimble. Another Primitive executive, Eric Meltzer, expressed on the Grin launch in his Proof of Work newsletter, saying:
As per the traditional evaluations, around 100 million dollars of VC money are put into special investment vehicles simply to mine Grin. This investment behavior impacts many things; it converts a group of people who might have been purchasing Grin into its seller, it also meddles with the structure of the early holder program; this shows that the chain will introduce with a very high level of security through PoW hashrate.
Why so much interest?
This is the thing which is coming closest to bitcoin, said an executive of a crypto investment firm (he denied to disclose the identity). In the minds of many investors, it is sort of equal to ‘bitcoin 2.0.
An Expert and investor (whose firm pooled up with a group of other Tier 1 investor to mine Grin) says, first off, it’s an innovation numerous early adopters are interested into, and there’s also an abundance of GPU and data center capacity that miners are anxious to point toward the Grin network.
He did not forget to point out the potential drawbacks of this mining. However, he accepted that Grin is intended to be exceptionally inflationary in its initial couple of years. Keeping aside the fact that it has invested resources into the ecosystem of Grin, Primitive Ventures reveals it isn’t mining Grin coins. Wan said the financial aspects simply don’t look right yet. Some experts think that grin is already overmined.
Random Crypto, a crypto company, is investing a huge amount of money in mining proof of-work coins, as it believes that a bear market is a correct time to get into this business.
All things considered, he personally wants to make the evaluation of mining’s profitability more open and transparent, launching a new mining return calculator to the general population.