GulfQuest Bitcoin Mining Project: Frequently Asked Questions
Over the last month, we have been compiling a list of frequently asked questions from both our team internally and a number of public sources. The questions below are broken down into three main categories:
Technology
A short answer for what is Bitcoin?
Bitcoin is the digital store of energy, which takes on the best qualities of Gold, Fiat, Stocks, all in a digital form that is immutable.
To understand Bitcoin, you first need to know what cryptocurrency is. Cryptocurrency is a digital token that doesn’t have a physical or tangible form. The token itself serves as a type of digital money that can be used to perform secure transactions between individuals without the need of a bank.
Bitcoin was the first cryptocurrency launched in 2009 with the goal of copying the transactional features of cash without the need to know or trust the other person in the transaction. The creator(s) of Bitcoin is still unknown to this day other than being referred to as “Satoshi Nakamoto”. These transactions occur on the Bitcoin blockchain (network), which has no central point of connection and is operated/secured by Bitcoin mining itself.
How does this bitcoin mining project work?
Distributed Ledger, Inc. will place a filtered air, containerized platform of specialized Bitmain S19 bitcoin miners on the grounds of GulfQuest that draws power from Alabama Power’s oversized 2Megawatt sized generator in the GulfQuest facility. The venture will require no GulfQuest or City funds, no liability to either and will be insured.
Is this mining operation permanent?
The project is designed to be a permanent fixture in Mobile. However, a standard tractor trailer can easily transport this container and platform or remove it from the grounds at the request of the GulfQuest Board or City of Mobile.
How much energy will be used?
The entire project consisting of 100 miners will only use 310 kW of power. This energy is already present at GulfQuest and can be labeled as accounted for in the demand load of Alabama Power.
Is Distributed Ledger going to be making a coin for the museum?
No. They will be providing the GulfQuest Board an agreed to percentage of all revenue mined.
Expected date for miners to be online?
We are anticipating an active date the first week of August.
Is the Bitcoin market strong enough to still make money doing this?
The Bitcoin market has never been in a stronger place than it is now. Mass adoption continues across many different industries and across the globe. Our production cost for Bitcoin along with our experience and efficiency methods allow us to maintain profitable margins for DLI and GulfQuest even in today's market.
How long will installation take?
Installation will take a few weeks due to permitting, careful planning, and methodical build lines. The actual work can be done relatively quickly, but we need to complete construction according to regulations and safety specifications due to the containers' location.
What will the setup be, or look like?
The setup will be a standard shipping container that is used in the Maritime industry which has been retrofitted on the inside to host miners. This will include racks, air vents, electrical, and more.
Project Venue
Why is this project good for the City of Mobile?
This new digital and internet-based global technology and its local application will allow all Mobile business and industry to be more competitive. The Linus Foundation and IBM have partnered with Maersk Shipping Lines to develop and build a Blockchain network which they have branded as TradeLens.
Maersk’s Shipping Blockchain network, the next evolution of the encrypted and expanded internet, already has 50% of all container shipping in the global maritime industry on its network. Mobile hardly knows what it is. This is an important moment of awareness and learning for all business, industry and governments in Mobile.
Why did we choose GulfQuest to do this?
Blockchain and bitcoin are the next level of internet technology and digital contracting in the maritime industry that tracks and receives (to include allowing digital crypto currency payments) global containerized cargo. This paradigm change in global shipping must be embraced by Mobile today, and what better way to introduce this new way of doing business than at the very place we cherish to celebrate the industry itself.
Is the city on the hook for the energy cost?
No, the city will not pay for the energy cost. It will be paid for by Distributed Ledger, Inc as part of a revenue sharing model.
Was there an excess of energy at GulfQuest that is being used?
The power used for Bitcoin mining at the GulfQuest Museum was already available, we did not increase the demand outside what was already available.
Will the noise be a deterrent for people at GulfQuest?
No, the total noise output will be reduced by the design of the mining container itself. Furthermore, the container is only 15ft long and will be located away from any of the museum’s day-to-day operations. We don’t have an exact distance at this time, but it’s safe to say a normal level conversation can happen within 20ft of the container, if not closer. We will have exact data on this once tested.
Will the container be part of the museum tour, or will visitors have to pay extra to tour the mining operation?
The container will not be a part of the museum tour to start. However, DLI and GulfQuest are working with universities and foundation grants to educate and involve regional government, business and industry in Blockchain and crypto currency.
Is Distributed Ledger paying lease to utilize the city-owned land?
DLI is the sole investor for this mining project which prevents the city from having to provide funding, assuming liability, or mitigating downsides. The GulfQuest Board gets a fixed percentage of revenue generated from the miner bitcoin. There is no guesswork.
Has the company indicated how it plans to make a profit from its mining in Mobile?
Mining will continue to be the backbone of blockchain technology. Many people don’t know that mining bitcoin and any other cryptocurrency will always be more profitable in the long run than purchasing the token(s) directly. This is why DLI’s team has dedicated a significant amount of resources to its existing mining operation. They have deployed and are deploying 25MW of hashrate at present with plans in motion to scale this closer to 500MW by 2024. The team has calculated mining difficulty through the next 15 years to ensure operations remain profitable.
About DLI & The Future
Has Distributed Ledger done mining elsewhere or is their first venture? Where are they out of?
Distributed Ledger is based out of Daphne, Alabama with additional operations in Wisconsin, Michigan, and Georgia to name a few. The company began mining cryptocurrency in 2017 and has continued to do so in Ohio, Oklahoma, Idaho, and Georgia. They recently announced the acquisition of a 135,000 sq ft datacenter in Columbus, Georgia.
What happens if the bitcoin operation fails? Are there any concerns from the museum about the operation be tied in with the museum or the city?
No. The container can be pulled off the GulfQuest yard with no consequence to the museum or city. Those who understand blockchain and cryptocurrency know it is the future. It will not fail. Application and systems bugs may need to be worked out in each industry and technology will continue to be refined and tweaked. All of which is happening now.
What comes next?
There are many partnerships being discussed with GulfQuest Board to educate and contract not only local maritime industry but all business and manufacturing industry locally to use this next evolution of the internet education and adoption and its enormous time and cost savings to industry and governments in bite sized chunks.
How many employees will the company need? Will there be any new hires?
This project has been designed to remove the need for continuous maintenance. We will not be hiring anyone at this time, but will continue to look for opportunities in the surrounding area to create new jobs.
How long will Distributed Ledger be at GulfQuest? Is there a timeframe from start to when the company believes it'll mine all the coins it can?
Distributed Ledger will be at GulfQuest for as long as we are welcome. The project is designed to be a permanent fixture in Mobile. However, a standard tractor trailer can easily transport this container and platform or remove it from the grounds at the request of the GulfQuest Board or City of Mobile.We will technically never mine all of the available Bitcoin.
What will the hours be?
Mining operations will continue around the clock 365 days without the need for someone on-site
Is Distributed Ledger a local company?
Yes, we are in Daphne, Alabama. Our company has been around since 2017 with large growth over the last two years. We placed #2 on the Inc. 5000 Regionals Southeast category. DLI was founded as a sister company of JMF Solutions, a local telecommunication provider in Daphne, Alabama that was started in 2005.