Insights

Introductory Memorandum

We’re iMining, a company built around the idea that bitcoin, blockchain technology, and other utility-proven cryptocurrencies are the future. Our team has always had a knack for identifying compelling business opportunities--and we love it. When Bitcoin first hit the headlines, like many, we found it tough to filter the value through the hype. We kept the peer-to-peer, digital currency on our radar and watched its roller coaster ride from our offices in Vancouver, BC. 

Our team is focused on bringing tangible and consistent returns to our many happy investors. It takes time for nascent technology to become fully understood, tested, and secure. Especially if it’s to be an underlying infrastructure. Wait too long and you’ll miss out on the rewards of being an early adopter and investor. We see decentralized blockchains as being foundational infrastructure to our future, digital economy. This is why we have chosen to first invest in mining. It’s tangible, and we’re supporting, securing, and being rewarded by the ecosystem. It’s a straightforward initial entry. Being an investor gives you ground level, quality exposure to this exciting space.

Why Bitcoin and blockchain? 

Great question. Bitcoin helps people. It allows anyone to engage in commerce much faster, cheaper, and much more securely than our current system. Those are big claims, but we’ve seen and used it first hand. How is this possible? The underlying blockchain technology. The fee for sending any amount of bitcoin right, whether it’s $10 million or $10, is about $0.17. Did you know most money sent around the world are remittances? About half a trillion annually. Many of those are small transactions of around $200 being sent back home by hardworking people. The average amount they're currently paying is around 10% but can be as much as 25%. Even if the average was cut in half to 5%, it would still be too high. We’re not even including the ridiculous foreign exchange rates and fees.

Using bitcoin, a transaction of $200 would cost 0.085% and arrive at the destination in about 10 min. Sending a bank wire takes 1-3 days, and depending on the time and day you send it, that could be even longer. This already seems like a no-brainer, but there’s more. It’s much more secure than current banking standards. Banks can be hacked, private information and money stolen. Transactions can be reversed after you’ve already sent good or services. With bitcoin, the only way you can be hacked is if you lose or give out your private keys. And Transactions are irreversible. You may be asking, how is all this possible? And this is an excellent question, with a complicated answer. For a detailed explanation of bitcoin and its blockchain click here

The short answer is decentralized consensus, math, and a little economics. Decentralized consensus, means to arrive in agreement on something in a manner that is not controlled or decided upon by a single person or authority. It the case of bitcoin and its blockchain tens of thousands of computers around the world, who do not know each other, arrive at this agreement. And this agreement is the current state of what are essentially “bitcoin bank account amounts”. In Bitcoin’s blockchain, consensus (or the state of the amount each person has in their account) is decided every 10 min. The savvy reader may have also made the connection that, this is likely why it takes 10 min to settle a transaction, and you’d be absolutely correct!

Now what’s really incredible about this technology, and this may help clear up some confusion. Bitcoin is often viewed as sound money (digital gold) or ideal money. The former meaning money that is, a currency backed by or pegged to some good or commodity. In bitcoin’s case, this tends to be the electricity input into mining (securing and ordering the network) and a factor of its scarcity; the finite 21 million bitcoin that will be in existence. Ideal money on the other, arguably more important, hand was discussed by John Nash, a brilliant mathematician and one of the fathers ofGame Theory (yes he also the character A Beautiful Mind is based on played by Russell Crowe). He stated idea money should “have the function of a standard of measurement and thus that it should become comparable to the watt or the hour or a degree of temperature.” He goes on to identify that “This variety of money would be intrinsically free of ‘inflationary decadence’ similarly to how money would be free from that on a true “gold standard”.

Now the above is a mouthful and an oversimplification of his argument, but effectively ideal money should maintain stable value over time. A predictable schedule of inflation should exist to avoid the erosion of purchasing power. This is the role of a central bank, however, the various central banks compete with opposing interests and ideas. Bitcoin is global, its inflation schedule is public, set in stone, and everyone involved has a vested interest in its success. It’s a beautiful, democratic and indiscriminate system of money with an incredible incentive structure. 

This is why we’re excited. The way bitcoin is disrupting a system of money and value transfer has provided us with a new way to view solutions to problems and inefficiencies. Being able to code rules and incentives into shared networks really will change the way we do business. This is why we’ve chosen to engage in mining bitcoin, one of the most important functions of the system (not to mention the most tangible). Miners spend significant resources securing the network while validating and ordering transactions. However, we’re also rewarded well for this, by being on the receiving end of newly minted bitcoin (12.5 every 10 mins). 

We’re long-term oriented and we’re excited to be involved at such an early stage with you. We know the learning curve isn’t easy and neither is the research to evaluate all these new cryptocurrencies and blockchain applications. We take care of the dirty work. You are provided with quality exposure to this new and exciting industry without the hassle. 

Leveraging our team’s experience in capital markets, our network, and this industry, iMining is positioned to grow to become leaders and provide our partners and investors the best returns. 

How are we going to do this? 

One STEP at a time.

Social
Prioritize projects and investment that have a real social impact. If our investments are allocated towards infrastructure and initiatives that create positive social impact such as cross-border payments and remittances the scale and return will be significant and meaningful. 

Technology
Continue to grow our investment in profitable mining infrastructure. We are currently researching and evaluating alternative cryptocurrencies and digital assets that align with our vision and criteria. This includes the less resource-intensive opportunities available in coin-staking and Masternode operations. These investments provide passive returns for supporting and securing other blockchain networks. Examples are Decred, DASH, and PIVX

Energy
Locate and partner with sustainable, reliable, and cost-effective energy sources and providers. The largest factor of profitability in mining is the cost of energy. We will continue to source cheap, reliable sources of power for our machines. Our top priority here is renewable energy and collocation partnerships.
  
Purpose
Validate that our investments have a purpose, primarily the underlying technology to projects we choose to be involved with. There’s a lot of hype and scams, as is common with new, exciting industries. We will cut through the hand-waving and utopian ideologies to secure utility-driven investments. 

For more, review our Investment Framework! Thanks and we look forward to growing with you!

 

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