MINERS IN DILEMMA: TO HODL OR NOT TO?

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Today, cryptocurrency mining operators could benefit from taking out loans while using their mined coins as collateral to cover their expenses and persevere during the current bear market.

MINERS CAN’T HODL…OR CAN THEY?


Large-scale miners have enormous fixed costs, which they must pay regardless of the price their mined coins are currently worth. Indeed, many mining farms operate on thin margins and a shoestring budget, where expenses like electricity, rent, and other overhead costs must be covered monthly or the operation goes under water.

Bitcoin and cryptocurrency mining, in general, is a cutthroat business where even the tiniest of advantages can give your competitors the advantage. Renewable energy sources, algorithm optimizations, superior cooling systems, and government subsidies are just some ways certain miners try to edge out the competition.

But regardless of whether you’re running AsicBoost or not, miners must still pay their monthly expenses to cover their operations. Unfortunately, this has been getting more difficult amid a prolonged bear market that has set in since the beginning of 2018.

So what could miners do if their mined or soon-to-be mined coins are dropping in value while they must also pay their bills?

https://bitcoinist.com/not-sell-miners-crypto-bitcoin-loan/

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