Razer Launches Crypto Mining Program That’s Set to Reward Gamers With Discounts

Gaming hardware manufacturer Razer has recently launched a cryptocurrency mining program that’s set to see gamers use their idle machines to mine, so they can be rewarded with a credit called Razer Silver, which will give them discounts on products.

According to Motherboard, gamers will be able to install a program called SoftMiner which uses their computers’ resources to mine crypto when they aren’t doing intensive tasks – like playing. The move comes after Razer partnered with gaming-centric platform GammaNow to reward users.

The news outlet’s report clarifies Razer won’t be keeping any of the cryptos mined, but will receive a fee for getting its clients to mine for them, paid for by GammaNow, the one that’ll manage which cryptos the gamers mine. These will reportedly be ether and other tokens.

Kevin Allen, a Razer spokesperson, was quoted as saying:

The cryptocurrency that’s being mined through this program is not touching Razer’s hands nor the user’s hands. We get a fee from the third party for generating cryptocurrency.

Essentially, GammaNow is getting the cryptocurrencies gamers mine and will be rewarding them with Razer Silver credits, while paying Razer itself a fee for getting gamers to mine. Rewards earned through the SoftMiner program will depend on gamers’ machines, and Silver credits can also be earned through Razer Cortex, a performance-boosting app.

Notably, analysts have pointed out this is a bad deal for gamers, as they could be getting more by directly mining the cryptocurrencies themselves. This, as according to ZDNet the value of each Razer Silver credit is of $0.003, valid for only one year.

Some of the rewards Razer offers, like a $199.99 keyboard, are theoretically impossible to earn, the news outlet reports, as the firm itself notes gamers could earn, on average, up to 500 credits every 24 hours. Factoring in electricity costs and wear and tear, various gamers have used social media to express they believe the program won’t be helpful.

Litecoin’s Mining Difficulty Is Down 28% Since Its Block Halving

Michael LaVere
  • Litecoin's mining difficulty has dropped 28 percent since the halving in Aug. 5
  • Miner profitability has taken a hit following the cut in block reward. 

Recent network data shows that mining hashrate on Litecoin’s network dropped 28% since the block reward halving occurred on Aug. 5, as miners forego the decreased profitability from obtaining LTC.

Litecoin Difficulty Declining

Data form mining pool BTC.com shows that Litecoin's mining difficulty was of 15.93 million on Aug. 4, one day before the halving, and has gradually fallen to 11.40 million as of Aug. 22. The hashing power for Litecoin’s network has dropped 28%. 

Hash rate and mining difficulty give an indication of the amount of computing resources being contributed to a cryptocurrency’s network, which includes securing transactions on the blockchain. It also provides a snapshot of the competition involved for miners hoping to obtain a block reward. 

However, following the Aug. 5 halving, Litecoin miners only receive 12.5 LTC, compared to the 25 LTC block reward they were previously receiving. In addition, the price of Litecoin has been on the decline since the beginning of August, slipping from $93 at the halving to its current price of $74. 

Most analysts predicted there would be market turmoil for the cryptocurrency in the aftermath of the halving. While the cryptocurrency has a reduced supply in the form of regular block rewards, the uncertainty surrounding mining and profitability has caused the price to take a hit. 

Charlie Lee, Litecoin's founder, said in the build-up to the halving that it would be a shock for miners,

When the mining rewards get cut in half, some miners will not be profitable and they will shut off their machine.

However, Lee predicted that the readjustment in mining difficulty would largely smooth things out for the cryptocurrency.