Binance supports mining of 3 cryptocurrencies with large investments in the bear market. Binance Pool will offer $500 million worth of loans between 18 and 24 months. The interest rate on the Miner Loan project currently ranges from 5% to 10%.
Support for cryptocurrency mining on Binance
Binance, the world’s largest cryptocurrency exchange, has announced that it will support the crypto mining ecosystem. Accordingly, Binance Pool has launched a $500 million miner loan project for BTC mining. According to the company, this project is the first of its kind for Binance Pool. Binance made the following statement in the announcement:
As one of the world’s leading cryptocurrency mining pools, Binance Pool has a responsibility to help maintain a healthy ecosystem of digital assets. In light of current market conditions, Binance Pool is launching a $500 million loan project to support crypto miners and digital infrastructure providers.
Additionally, the company announced that it will focus on providing debt financing for both private and public Bitcoin miners. It also plans to provide support for crypto-asset infrastructure worldwide. Binance Smart Pool is known for its guaranteed minimum income and simple transactions.
The pool allows users to use the same algorithm to increase profits. Thus, it allows them to automatically change their hash rates to mine different cryptos. As stated on the website, Binance Smart Pool is compatible with the SHA256 algorithm. This means that users can automatically switch the hash rate between Bitcoin (BTC), Bitcoin Cash (BCH), and Bitcoin SV (BSV). However, the announcement did not provide clarity on the inclusion of Gala, Ethereum and other cryptos in this support program.
$500 million loan from Binance Smart Pool
As we have reported as Kriptokoin.com, Binance Pool will give $500 million worth of loans between 18 and 24 months. In addition, the interest rate will currently range from 5% to 10% in addition to the collateral to be provided with physical or digital assets with Binance Miner Lending. The company is also concentrating on working with several cloud mining products. In this context, he makes the following statement:
The pool plans to launch cloud mining products. Binance Pool is looking for cloud mining vendors to work with us as cloud mining hashrate will be purchased directly from Bitcoin mining and digital infrastructure providers.
In the midst of a crypto winter, such support is quite important. Because it is possible to provide a great relief to crypto miners in need of capital. Last year, miners had to sell their BTC holdings to cover their operating costs. Arcane Research has also confirmed this. The researchers found that miners sold more than 100% of their output in May 2021, when the asset’s value dropped by nearly 45%.
With the increasing hashrate and mining difficulty, miners are left with no choice, according to Joe Burnett, an analyst at Bitcoin mining firm Blockware Solutions. The analyst makes the following statement:
Over the past six months, the hash rate and mining difficulty have increased while the Bitcoin price has dropped. Both are negative for current miners as both work to squeeze margins.
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