Bitcoin (Bitcoin) The rapid recovery above US$46,000 once again calls for the price of BTC to reach US$100,000 by the end of 2021, and with the Bitcoin network, the impact of China’s crackdown on the mining industry is slowly beginning to fade Hash rate shows signs of recovery.
One of the side benefits of China’s crackdown is that it lowers the barriers to entry into the Bitcoin mining sector, which has been proven to provide profits in both bull and bear markets.
Bitcoin mining is one of the few ways that investors can obtain BTC without directly buying from the market, and it is rapidly becoming an industry dominated by large capital interests that can afford the electricity needed to operate the mining business Costs and maintenance expenses.
The following are some options for ordinary cryptocurrency stackers to obtain more BTC through cloud mining contracts, cryptocurrency lending platforms and centralized exchanges (CEX).
Table of Contents
Cloud mining contract
The cloud mining industry has existed since the early days of Bitcoin. It provides opportunities for outsourcing production for those who are interested in Bitcoin mining but lack the required space, equipment, and electricity.
Some well-known companies that provide cloud mining services include Genesis Mining and HashNest, but demand for their services exceeded their capabilities, resulting in all their Bitcoin mining contracts being sold out.
One of the mining operators with currently available contracts is Shamining, a UK-based company that has been operating since 2018 and claims to have data centers worldwide, with locations in California, Mexico, Cape Town, South Africa, and London, UK office.
Through this service, users can rent mining equipment and pay related expenses for the operating unit, while the company is responsible for the physical housing, operation and maintenance. Once running, the revenue generated can be withdrawn to the bitcoin wallet designated by the user.
The current lease contract includes two options for GPU miners. The cost of 23,580 GHz/s is about US$283, and the cost of 94,340 GH/s is about US$1,066. Another option for ASIC miners is currently costing US$2,571 and 235,849 GH. /s Mining capacity.
All contracts indicate that their profitability starts at 143%.
Another option that allows users more flexibility in the parameters of their mining contracts is ECOS, which originated in the free economic zone in Hrazdan, Armenia and has been operating since 2017.
As shown in the figure above, the current cost of a 50-month contract of 9 terahashes per second is US$1,668, and it is expected to generate 272.82% profit at a BTC price of US$70,000.
It should be noted that all cloud mining services warn about the high risks involved and cannot guarantee the level of profit. This may be caused by a variety of circumstances, including electricity price fluctuations, Bitcoin price fluctuations, and advances in mining technology that have led to a significant increase in the difficulty of mining, leading to obsolescence of old equipment.
related: As miners settle overseas, the difficulty of Bitcoin mining has risen again
Crypto lending service
A more traditional option is to obtain more bitcoins by using a stack that they currently do not require any further investment, such as mining.
Nexo and Celsius are the two most famous lending platforms, which allow cryptocurrency users to borrow funds with their crypto assets or earn deposit rewards.
At the time of writing, Celsius provides users with a Bitcoin deposit annual rate of return (APY) of 6.2%, Nexo provides a standard return of 5% for flexible fixed deposits, and fixed deposits can earn 6% for at least one month.
The third option to provide users with a 4% return on BTC deposits is BlockFi, an encrypted asset service provider that provides interest accounts and encrypted loans, and recently launched a Bitcoin reward credit card.
related: What bear market?Investors invest a record amount of cash in blockchain companies in 2021
Earn BTC from centralized exchanges
Several centralized exchanges also provide bitcoin holders with a return on BTC deposits, even though the interest rate is lower than the aforementioned interest rate.
Binance is the largest CEX in the crypto ecosystem, providing users with an estimated annual interest rate of 0.5%, while the third-ranked exchange Huobi offers an annual interest rate of 1.32%.
The best rate of return provided by American CEX can be found on Gemini, and users can get 1.65% of their deposits.
KuCoin provides a more free market method for BTC loans. The lender can set the parameters of the loan terms, choose between the contract period of 7, 14 and 28 days, and set its own daily interest rate to compare with other lenders. Competitive market.
The lowest interest rate currently offered by KuCoin is 1.82% per annum for a 7-day contract.
As can be seen from the data provided, there are multiple ways to increase the Bitcoin stack, rather than simply buying them on the open market, but over time, they become more and more scarce.
As large institutions, energy companies, and governments begin to develop Bitcoin mining infrastructure, small market participants are increasingly being squeezed out of the market because cloud mining facilities cannot keep up with demand.
Bitcoin loans are becoming more and more like the main way for BTC holders to obtain the income paid in BTC in the future, and Bitcoin-backed loans provide holders with a way to obtain their tokens without the need to sell and create tokens. The value of the way is taxable events.
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