5 Ways to Increase Acceptability of Cryptocurrency: From Skepticism to Mainstream Adoption
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2022-05-03 | Selina Mathew
As Bitcoin (BTC) remains in a phase of significant volatility and correction, Bitcoin miners have resorted to their own kind of "yield farming."
Marathon Digital as well as Riot Blockchain, two of the largest Bitcoin mining companies, frequently trust in their HODLing approach for long-term returns. Consolidation periods or long-term bear cycles, on the other hand, may provide difficulties. These businesses have significant operational expenditures in regards of equipment purchases, hardware, and power bills.
According to Bloomberg, instead of selling Bitcoin to acquire extra funds, these miners are selling Bitcoin call choices to cash out their holdings. As a result, they are reverting to a vintage yield-generating approach based on traditional finance.
These mining behemoths are taking advantage of the reality that "contracts commonly terminate empty." In this instance, the contract's owner receives nothing. The Bitcoin miner who offered these contracts, on the other hand, may keep the money the customer paid to buy these options.
Nevertheless, there may be significant hazards in the rising market. As a result, if Bitcoin reaches the exercise price, the miners will have to take a loss.
Farming Bitcoin Yields for Fast Expansion
According to Bloomberg, publicly-traded Bitcoin mining businesses are seeking fresh yield techniques to support their operations. Surprisingly, they are searching for a route forward without issuing fresh stock or debt.
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