United American Corp. (UAMA)

[BTCGoat]

Not trying to bash the company, but I personally do not like this move.

Their numbers are correct as long as electricity cost 0.04 - 0.05 per kWh. The current pricing in Montreal, which could be residential, is between 5.82¢/kWh - 8.92¢/kWh.

One of the biggest problems will be Casper, which is about to be implemented any day now on the Ethereum blockchain. Casper is changing Ethereum from a Proof of Work to a Proof of Stake system.

Proof of work is where computers solve equations and are rewarded the coins in return for the work. Ethereum is mined with Graphics Cards.

Proof of stake is where you stake your coins and are rewarded if you solve the block, meaning you are mining with just holding your coins in a wallet that can stake. This method will eliminate graphics cards mining, making the rigs this company makes obsolete for Ethereum mining.

Now, this doesn't mean that these rigs they are building will be worthless, they will actually be more profitable if they mined other coins instead of ETH anyway. ETH is just more of a stable coin, price wise, which is why they are mining it most likely.

My issue with this company is that they are watering down their business model. They need to stay focused on what they are trying to do with Blocknum and GIGA token. At current coin prices, for 50+ rigs mining will be approx. $400-$500k a year and that is with Bitcoin and other coins holding their value. Either way I think mining will be profitable for them, but that is not the point.

I feel like they are now just throwing everything at the wall and whatever sticks/props up their stock price they are going with.

Once again not bashing, just putting in my 2 cents.