The bitcoin mining space is continuing to evolve. And as miners continue to grapple with bitcoin's reward getting cut in half as it does every four years, the future is only getting more interesting.

To discuss the evolving mining landscape, Roundtable anchor Rob Nelson sat down with Marko Tarman, Mining Manager at NiceHash. NiceHash offers a unique marketplace for mining enthusiasts and traders, creating a dynamic space for buying and selling hash rate, or mining capacity to win a bitcoin reward.

The conversation kicked off with Rob Nelson asking Marko to discuss how the platform operates and the benefits it brings to the mining community. Marko likened their platform to an electricity marketplace, where hash rate is treated as a commodity. “You have power plants producing electricity and brokers distributing it. In our case, miners produce hash rate, NiceHash acts as the broker, and the buyers are the end consumers who decide where to liquidate that hash rate,” Marko explained.

Nelson probed further about the types of buyers in this marketplace. Marko clarified that buyers vary from mining companies testing their operations to traders looking to profit from price differences. Additionally, there are “solar buyers” who purchase large amounts of hash rate for short periods, hoping to capitalize on quick market movements.

NiceHash’s platform operates on a bidding system where buyers compete against each other, ensuring sellers receive an average price for their hash rate. Marko emphasized, “The average price is taken from hundreds of orders, while sellers get a consistent rate, buyers pay different amounts based on their bids.”

Interestingly, Marko mentioned that NiceHash isn’t just for small miners. Even publicly traded mining companies use the platform. “There’s no limitation, no contract,” he said, noting that both individual miners and institutional traders find value in their services. One practical use case he highlighted was insurance for mining farms. If a farm fails to maintain a certain uptime, they can buy extra hash rate to meet their commitments.

Marko also touched on the efficiency benefits of NiceHash. He said, “There are so many use cases of on-demand hash rate with no contracts, where you pay as you go.” This flexibility is crucial for both buyers and sellers, offering a seamless experience akin to traditional mining but with added benefits.

Nelson was curious if there were other companies like NiceHash. Marko acknowledged the existence of cloud mining platforms but was quick to differentiate NiceHash from them. He explained that cloud mining platforms could use NiceHash’s market to buy hash rate, but NiceHash itself isn’t a cloud mining service. “We are not a cloud mining platform,” he stated firmly.