Falling prices pose problems for the entire crypto ecosystem. The bitcoin (BTC) mining industry is no better off. However, Binance Pool’s proposed $500 million loan may well be a game-changer and revive bitcoin mining.
Binance Pool and its grand plan to revive bitcoin (BTC) mining
Since the beginning of the bear market this year, the crypto sector has been operating in slow motion and miners are not immune. Indeed, the fall in the price of the main cryptocurrency has posed a real problem for the industry. The latter is no longer profitable and the miners are struggling to get their heads above water. Fortunately, the world’s largest digital asset exchange made an announcement today that could change things.
After riding the downtrend like a boss, Binance decides to get more involved in the bitcoin mining industry. On its website, Binance Pool revealed its loan project to help minors. This initiative of 500 million dollars should make it possible to grant loans to private and public miners.
However, the offer is subject to a guarantee. Miners will need to present collateral that will last between 18 and 24 months, in the form of digital or tangible assets. In addition, the loan will attract interest rates varying between 5 and 10%. But that’s not all.
Binance Pool is also planning to deploy cloud mining products. Because of this, he is looking for cloud mining providers. Recall that since the fall in prices, bitcoin (BTC) has been struggling to cross the $25,000 mark. As this shows chartthe profitability of bitcoin mining has been falling sharply for many months.
Several factors impact the profitability of a miner. Lower prices and increased difficulty playing a very big role. But the energy costs are not negligible either. Thus, Binance Pool’s loan project could greatly help the bitcoin (BTC) mining industry.
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