Cloud Mining Reinvented

A market needs to be made.
Alex Zhao of BTCST Team

About a year ago I made an article about cloud mining. I still consider that article being valid enough, but recently I run across some new shiny reinvention, namely -- a tokenized hashpower.

Actually, I've got a notice from Binance Launchpad about the upcoming BTCST token launch. Everyone who stakes BNB, BUSD or BTC at Launchpad for a month, earns a certain amount of BTCST tokens.

BTCST stands for Bitcoin Standard Hashrate Token (actually, it should be BTCSHT then, but who cares). Roughly, staking 1 BTCST is equal to mining BTC with 0.1 Th/s (aka 100 Gh/s) hashrate. In other words, it's like "owning" a share in an ASIC hardware and its corresponding rewards.

The token is supposed to be tradable soon, that is you can sell your "share of ASIC" or buy more at any time, it's better than a one-way inwastment into a "cloud mining" service. Besides, the token is supposed to be speculative, that is you can buy it low and sell high.

However, the question of profitability is still questionable.

First, 0.1 Th/s (aka 100 Gh/s) is a very small hashrate, currently it mines about 100 BTC sats daily, not counting electricity and other costs paid from the token's reward pool.

Second, the higher the total hashrate is -- the less BTC your 0.1 Th share earns. The total BTC hashrate is about 170 Eh/s today (about ATH), and historically it tends to grow over time (it can dump, but historically it has been only growing, on average). That is, this way 1 BTCST will earn less and less BTC over time, and the price of 1 BTCST itself will go down too. The only hope is that the growing BTC price will cover that depreciation.

Third, the price of the token is not clear yet, BTCST might be a good buy at 1 sat, but not so good at 1000 sats.

Anyway, I've staked about 3.5 BNB (secured by a BNB/USDT short) and have already earned as much as 0.004 BTCST!

I wonder what APY it will make me and if I manage to sell that shit after all...

Posted Using LeoFinance ^Beta