Mining cryptocurrency is not easy. One needs to spend a lot of money in order to get a decent computer for mining cryptocurrency. This ensures that not all people are able to partake in the mining process, However, CryptoTab looks to change that. The new business venture will let you mine cryptocurrency through your computer’s internet browser.
Mining through internet browsers is something frowned upon in the cryptocurrency world. Therefore, to see a company using that idea and turning into their own business model is surprising. However, CryptoTab might just turn the disbelievers into believers. However, it would take some time for the CryptoTab business to get some users on board due to the negative image of in-browser mining, that’s a problem CryptoTab will need to overcome.
The idea behind CryptoTab is that it lets anyone mine any cryptocurrency, for example, Bitcoin by using their chrome internet browser. People using CryptoTab don’t need any high-performance expensive computer in order to mine which makes it a desirable investment for many. Nowadays it’s not possible to mine Bitcoin unless one spends a lot of money. This is why Bitcoin mining is largely done by large-scale companies and not by the common user.
Therefore, the idea of getting Bitcoin through your laptop seems too good to be true. However, keep in mind that the amount of Bitcoin you’ll be getting won’t be a large amount. Given Bitcoin’s property of being able to go into decimal amounts, you can get 0.00000001 Bitcoin for your troubles. The cost of keeping your computer on for a long time may exceed the benefit from Bitcoin you would be receiving which raises the question as to why one would use CryptoTab. This is also one of the fair criticisms of browser mining as the benefits do not exceed the costs. However, CryptoTab is trying to make it work.
Although the business model for the new venture seems to be legitimate, you won’t be able to start earning money straight away. The service will run using a referral system. A majority of your earnings won’t come from the cryptocurrency you mine (because you’ll be getting so little) but instead through the number of people you refer. However, even after this, don’t expect to earn a lot because you won’t actually be investing any money. Therefore, it’s best not to expect high returns from a free service. The amount of money you get would be equal to a small percentage of other people’s earnings (the people you refer), thus the more referrals you get, the more money you can possibly earn.
The business model is interesting, to say the least. The company is currently running its own Bitcoin mining operations. Once users are on board and install the Chrome Plugin, they will be paid the Bitcoin in exchange for referring their friends. There are many questions that come up with this approach, how will it be sustainable with a large number of people? Is their Bitcoin mining process efficient enough to remain manageable in the long run? Would the amount of money paid per user decrease as more people sign up? There are many questions which the company would need to answer if it were to get people on board.
However, a problem with the CryptoTab service is that you don’t get any money if you refuse to invite any friends. That defeats the purpose of mining Bitcoin through the browser. Then CryptoTab would be misleading its users if it were to claim that it lets people mine cryptocurrency through internet browsers. The entire system revolves around referrals.
However, the service is free to use and it’s an interesting concept nonetheless. If you have a large social circle then you can possibly earn a decent amount of money through CryptoTab. However, the service will need to clarify its stance on how things work and would need to answer many questions before it gets a large following.