Even though mining cryptocurrency through internet browsers is somewhat of a controversial practice, some companies are trying to turn it into a legitimate business. CryptoTab is one such project. There are some concerns over what this project has to offer, though, as it seemingly requires users to refer people before getting paid.
CryptoTab is Intriguing yet Worrisome
It is always good to see companies trying to turn a negative development into something positive. CryptoTab is trying to bring some positive attention to the in-browser mining industry. Given all of the negative attention this industry has received as of late, it is only normal that people would be hesitant when ventures like these come around. Skepticism is a good thing in the cryptocurrency industry, for obvious reasons.
The objective of CryptoTab is to let users mine Bitcoin in their Chrome browser. Although this sounds like a convenient solution, everyone will agree mining Bitcoin with a regular CPU will not earn you any decent amount of money. That has been the case for some time now, as most users will earn fractional amounts of BTC at best. We are talking about Satoshi here, which means the smallest unit of a Bitcoin, eight digits behind the decimal.
Even so, there will always be people who think this is a worthwhile venture. All they’ll have to do is let the Chrome browser run on their computer while the device is on. To these people, it will sound as if they are generating Bitcoin for free, even though that is not really the case. That’s because their computers will consume a bit more electricity than they otherwise would. This extra cost might not even be offset by the amount of Bitcoin that users will earn using this service.
While the CryptoTab business model appears to be perfectly legitimate, it does appear users will need to invite others before they can actually receive any money. With a ten-level referral program, it seems most of people’s earnings will come from the people they refer. However, as users are not actively investing any money, they will still be paid a small percentage of other people’s earnings. This business model will raise a lot of questions.
According to the website, the team is running their own Bitcoin mining operation as of right now. As more people start using the Chrome plugin, the operation will supposedly become a lot more efficient, and users will be paid in exchange for referring friends. It’s an intriguing business model, although it remains to be seen how long it remains manageable. After all, there is only so much money to go around, yet new users may continue to sign up for this service over time.
Based on the calculator provided on the website, refusing to invite people will result in earning $0. That can’t be completely correct, yet it would also make some sense. At the same time, it would not explain why anyone would ever mine Bitcoin using this plugin to begin with, as there is seemingly no way to make money without inviting others. Since it doesn’t cost money to use, that shouldn’t be much of a problem, but that won’t necessarily make CryptoTab more appealing. It’s an interesting service to keep an eye on, but it’s one that may need to clarify a few things in terms of how money is earned.