Today, I'd like to share with you a recent interview I had with EcoCoins:
Money-Monitor: First of all, let me start with a question about your beginnings. What made you become interested in the online line of business?
EcoCoins: EcoCoins has been created as a technical start-up, based on cheap eco-mining, which I have developed with a team of my friends. The investment program has been created later - at the moment we’ve realized that our idea is promising and needed funds for solar panels and mining farms equipment. Thus we got into the online business.
Money-Monitor: How did you happen upon Bitcoin in particular?
EcoCoins: Personally for me, all started in 2009 in the early days of crypto-technologies. I remember the first miners in my cellar and my first 50 Bitcoins which I’ve bought a bike with. If I knew then that they would grow up so much...! :) Before the start of EcoCoins, Bitcoin was just my hobby, but one day the critical mass of knowledge has grown, and I felt I wanted to bring my developments into life. Thus the EcoCoins project appeared, we created it together with my friends, who’re the same zealous Bitcoin enthusiasts.
Money-Monitor: Is being eco exceptionally important to you personally? Or was it a business decision on your part, seeing that it’s a very hot topic nowadays?
EcoCoins: Actually, both variants are right. I could not just do business without believing in what I’m doing. I am completely sure that eco-technologies hold great potential in future, and I want to make my contribution into their development. Pay attention to Elon Musk. His Tesla cars are no longer exotic, but quite ordinary vehicle. And it’s not already the single offer on the market today. The world is developing at a tremendous pace, and I also want to take part in this development.
Money-Monitor: What is the meaning behind connecting eco-friendliness with cryptocurrencies?
EcoCoins: First of all, the connection consists in what we are doing - optimizing the costs of cryptocurrency mining. We use this connection to solve several tasks at once: development of eco-, and mining technologies, supporting the idea that any business should be maximum energy-efficient and that the damage caused to the environment should be minimal; and, of course, let’s not forget that this business allows us and our partners to earn money.
Money-Monitor: Having spent some time in the business, what is your opinion of the cryptocurrency market?
EcoCoins: The cryptocurrency market is very dynamic. New currencies are constantly appearing while the ineffective ones are dying out, the things are moving on. We believe that cryptocurrency is a new evolutionary stage of the world financial system development. This market has no boundaries - neither geographical, nor economic. It will grow and develop.
Cryptocurrencies’ ideology goes far beyond the advantages over paper money protected from counterfeiting, they are also a repository of historical information on transactions, they provide Smart Contracts mechanisms ensuring the implementation of agreements between the parties without human factor interference.
The number of major banks and corporations which are now turning their attention to the cryptocurrency implementation, constantly increases. In some of these enterprises, special departments are created to study the use of cryptocurrencies in their industry. For example, ABN, Rabobank and some other Dutch banks are seriously considering the forthcoming replacement of SWIFT with a new technology based on Blockchain. The European Union and many other states also pay attention to the phenomenon of cryptocurrency and are actively amending their legislation to provide additional security and legitimacy of cryptocurrency usage, which also helps the development of this market.
Money-Monitor: As we all know Bitcoin tends to be very unstable. How much does this unstableness affect the program?
EcoCoins: Conversely, the volatility of the Bitcoin exchange rate gives our program certain advantages. Most of our equipment suppliers are happy to work with Bitcoin. Some of our miners are mining mainly Bitcoins, which provides us with a constant inflow of this cryptocurrency. And for our traders, who trade in the cryptocurrency exchanges, this makes ideal market conditions for getting constant profit at long and short intervals. Having our own traders, who are constantly monitoring the market situation, we enjoy an opportunity to exchange the altcoins we have obtained for Bitcoin at the most favorable rate.
Money-Monitor: Is there any future with/in Bitcoin?
EcoCoins: Undoubtedly, now it’s one of the oldest and most persistent cryptocurrency. People primarily associate the concept of cryptocurrency with Bitcoin. Now it has the largest network of miners, and becomes supported by more and more stores, service providers and large companies such as Microsoft and Dell. Even in spite of the high volatility of the Bitcoin exchange rate, its price constantly grows in long-term perspective, so we use it more and more often as a reliable means of saving our finances. All these things provide Bitcoin with steady increase of popularity.
Money-Monitor: We have read that "EcoCoins has put an end of the oil millionaires epoch: now you need nothing but green energy to make your own fortune". Someone might get the impression that you do not like the oil business. Would that be an accurate statement?
EcoCoins: We believe that the era of fossil energy sources such as coal, gas and oil is gradually becoming a history. More and more mechanisms and vehicles are switching to electricity. Some countries, such as the Netherlands, are ready to ban the cars with internal combustion engines since 2035, and to refuse of provision houses with natural gas in the same year. Actually the European Union plans to stop selling diesel and gasoline cars by 2050 too.
Some of these initiatives are at the draft stage, and some of them have already been adopted. Along with these initiatives, the technologies allowing to extract electricity from renewable sources are actively developing. Solar panels are becoming cheaper and more resistant to external influences while their efficiency is constantly increasing.
Wind generators get rid of huge blades, become more compact, quieter, easier to maintain, make less demands on wind power, which allows them to be more and more widespread in the cities and to be used in small households.
Also, we should not discount the hydrogen technologies having almost inexhaustible supply of fuel which become safer year-by-year. Along with electric power generation technologies progress, the development of ways of its accumulation and storage do not remain behind. Batteries are becoming more capacious and less dimensional, while charging much faster, which greatly facilitates their use both in transport and everyday life, and even for industrial purposes.
Money-Monitor: It seems that you’re now very user-friendly. For instance, you don’t require any verification from your users. But, as we all know, such an attitude might have its drawbacks. Will you remain this laissez-faire or is it something temporary?
EcoCoins: Well, look: this is a part of our company’s policy and ideology. Anonymity is an integral part of any cryptocurrency. We trust our users and they trust us without any documents and formalized guarantees, as do millions of Bitcoin users around the world. And this is a kind of revolution.
Money-Monitor: I need to ask this as I have always been curious - you require the users to provide their "actual cell phone number". How often do they use fake ones?
EcoCoins: You know, sometimes it happens, but not very often. Sometimes users indicate either nonexistent phone numbers or free public numbers, so-called one-time numbers. We request to indicate correct numbers just because we manage financial issues, but finance needs reliability and prompt communication. For example, if an unusual activity is detected in the user's account, we may need to quickly contact him, and if the phone number is incorrect, it will be less efficient to communicate via email.
Also, we are planning to integrate two-factor authentication and SMS-alerts on users’ accounts critical events in the nearest future. However, the users having fake and incorrect phone numbers will not be able to use these services.
Money-Monitor: As you write, "our company has developed an own low-cost way of Bitcoin mining. We invest into green energy and solar power plants to power server farms for Bitcoin mining and have an extra-profit". It sounds very cool, but vague at the same time. Could you elaborate on your investments?
EcoCoins: In fact, everything is quite simple. To date, Bitcoin-mining has closely approached the threshold of profitability primarily due to energy costs. Modern ASIC-devices already consume kilowatts of energy, and electricity bills are becoming notable. For example, with the US prices in terms of the volume of extracted Bitcoin, bills can amount to 70% or higher. It is easy to check, it is enough to find the technical parameters of ASIC: AntMiner S5 consumes 0.7 kW and it’s more productive "older brother" AntMiner S9 – 1.4 kW already, and this is very, very much. At the same time, miners’ award was reduced twice in the past year. You must have noticed it as miners stopped accepting transactions without commissions or with a low commission.
At the same time, there is a boom for the energy of nature. In the context of our activities, it is primarily solar electric power. The development of solar energy in recent years is impressive, and solar panels have become more economically efficient than electricity "from the wall" supplied by energy companies.
Thus, if we make it much easier, we took a device for mining, connected it to a solar panel – and got practically free cryptocoins!
The reality is somewhat more complicated. For example, we do not use Desktop-PCs or even laptops as host systems, but single-board microcomputers like Raspberry Pi, Odroid and Orange Pi. Power consumption of these babies is fantastically low!
The investment program has been created with an intention to obtain funds for our farms and panels technical equipment. And sure, we constantly monitor the cryptocurrency market and are engaged in crypto-trading, so we use a part of the funds invested for trading.
Money-Monitor: I think that the credit program might be a bit confusing to some potential users. Could you explain it using a specific example?
EcoCoins: The loans suit perfectly those users who know they will have free funds within the next 5 days, but want to make a deposit right now. The loan commission is very small - just 0.5% of the loan amount. This payment is more than covered by the profit user receives from his deposit. Let's use a concrete example to analyze the way it works:
Let’s suppose, you have a Common plan deposit of 0.100 BTC which gives you 0.00165 BTC of daily profit. According to the terms of the loaning program, the profit your existing deposit brings, must cover the loan interest rate. Thus the maximum loan amount is calculated proceeding from the following rule: the loan interest which makes 0.5% of the loan amount, should not exceed 0.00165 BTC. As a result of simple calculations (0.00165 / 0.005) we get the maximum credit limit of 0.330 BTC.
So, you’ve created a deposit of 0.300 BTC, using credit funds. You have two active deposits on your account: a Common one of 0.100 BTC, and one more Common of 0.300 BTC.
Your daily transactions are:
• the 0.100 BTC Common’s profit is 0.00165 BTC
• the 0.300 BTC Common’s profit is 0.00495 BTC
• the 0.300 BTC loan’s payment is 0.00150 BTC
You have to repay the loan within 5 days. If suddenly you’re not able to do it, the deposit of 0.300 BTC will be simply deactivated, the profit received will be charged off your account. If you manage to repay the loan in time, the profit received from the deposit loaned will remain on your account, and the deposit will continue working as usual.
Thus, such a credit is a very comfortable financial instrument, that gives you additional freedom of choice and some financial benefits.
Money-Monitor: As one may read in your FAQ, "at the moment a deposit can be made with Bitcoin, Perfect Money, AvdCash, but we plan to add more alternatives in the nearest future". Could you shed some light on the aforementioned alternatives?
EcoCoins: In the nearest future we will add Payza. All legal formalities are already settled, and now our IT experts are working on the technical integration of Payza to provide our clients with the possibility of buying Bitcoin directly on our platform, for making their investments.
Money-Monitor: Your blog is well-developed and you post original content, which is not as obvious as it should be. What are your readership goals?
EcoCoins: We want to share our views on eco-technologies, our experience in mining, and the experience of implementing eco-technologies into IT-processes which are not closely connected at first glance. Maybe it will spur someone on creation of his own environment friendly and useful project. We believe that in this way we can make our contribution into the planet’s environment protection and preservation.
Moreover, composing articles for the blog helps our experts in additional systematization of their knowledge, maybe even learning something new. Therefore, writing articles is also considered to be an additional development of our team members.
Our blog also helps us to find fresh minds for our team. In this way we have already found a good Vietnamese expert. He became very interested in our projects after having read about them in the blog. Now we’re working together on our mining platform optimization.
Money-Monitor: You are on YouTube, Facebook, Twitter and Google+. When it comes to your social media presence, what are your plans?
EcoCoins: Currently we’re exploring the possibility of adding the VKontakte social network, which is quite popular with our Russian-speaking audience. We’re also monitoring specialized MLM networks as well as places of mining and eco-technologies experts concentration.
Money-Monitor: Are you planning on adding even more language versions?
EcoCoins: Yes, we are. As far as we notice a growing interest from certain language group to our website, we organize its translation into this language.
Money-Monitor: Have you had any experience with Polish investors? And are you considering adding a Polish version of the website that would also include the support system?
EcoCoins: It has not happened yet, but we know that there are a lot of financially literate people in Poland who also share our views on environment friendly approach, so we’re really interested in working with Polish audience. First of all we’ll start with adding Polish language and support to the website. Currently we have English-speaking support staff, but modern translation technologies such as Google Translate allow them to well understand the meaning of the user's questions and find proper solutions. This method works quite well with Russian-, and Vietnamese-speaking audience.
Money-Monitor: Any other future developments on your mind? Where do you see EcoCoins in, say, a year?
EcoCoins: We’ve determined two principal goals, the first is environmental concern and second is green power solutions development. In our blog you can find a number of publications dedicated to solar power. We believe that ecologically clean renewable power sources are the wave of the future. Just have a look at Elon Musk’s unique experience. That’s amazing! He just turned a geek plaything into a utilitarian product. His Tesla is not just a competitive product, it greatly surpasses the cars with usual internal combustion engines. Toyota Motor Corporation has a mass production of cars working on hydrogen, that belche… just water into the air! Just pure distilled water! And this is the future, that’s coming, it’s near, and we’re a part of this future.
I think you know well that traditional mining (it’s when an ASIC is powered from the wall) is on the verge of efficiency because of electric power costs that take 30% - 90% of profit. Just due to this reason miners refuse to confirm transactions without fees.
But we’re completely free of these restrictions. First of all we get profit of mining that costs almost nothing. Sure that while working on new technologies and optimizing our software we just had to merge deeply into the cryptocurrency world. We’ve got unique experience that has given us an impetus for the crypto-trading. The phenomenon of cryptocurrencies including even Bitcoin is very young and that’s why they’re pretty volatile. This makes the cryptocurrency market rather profitable and attractive.
Thus having received such a unique experience we’re making ambitious plans. Thanks to our client's’ investments we do not just get profit from cryptocurrency exchanges, but plan and construct new mining farms.
Our technological development never stops. Recently our engineers have developed an own prototype of a chip combining the flexibility of FPGA miners and the speed of ASICs. It’s been actively tested at the moment. This will give us a possibility to flexibly change our mining infrastructure and adapt it for various types of cryptocurrencies.
Speaking of such matters as cryptocurrencies, we’re planning to launch our own altcoin, which algorithm will be adapted for eco-mining. But this will happen not earlier than next year…
Money-Monitor: Finally, I have to ask: are you "eco" in your real life?
EcoCoins: Yes, sure! My house is full of eco-, and energy saving stuff (solar panels, heat pump, recuperation system, partial use of waste water for irrigation, etc.). Additionally we have organized waste sorting such as separate collection of batteries / lamps for processing in all our offices and technical sites. Solar panels are installed in the places where the building's construction allows.
In conclusion, I wish to express my appreciation to HyipForum administration for this interview.
Chief technical Officer at EcoCoins
Thank you EcoCoins!