The mining gold rush has also led to the creation of mining hashpower pegged hashrate tokens launched by Binance and mining farm operator Poolin. Bitcoin’s race to $42,000 record price has led to a mining gold rush to profit the most as a result the mining difficulty on the network has also soared to an all-time-highs.
Demand Rises for Binance Hashcoin [BTCST] and Poolin Hashrate Tokens
The surge in demand for these tokens has skyrocketed their price in the wake of the ongoing bull run as a result they are selling at a highly inflated price. Binance Hashcoin BTCST that was launched on 13h December is trading at $73 where each token is pegged against 0.1 T of 60W/TH while Pollin’s hashrate token represents 1 terahash second (TH/s) of hashing power owned by Poolin at a power efficiency of 35 Joule per TH.
On 13th, Binance Hashcoin BTCST was launched, reaching USD 73 at 19: 00 Beijing time. Each BTCST is anchored at 0.1T of 60W/TH, which is equivalent to an astonishing $730/T. The hashrate coin launched by Poolin is about USD100/T, 35W/TH, which means electricity cost is lower. pic.twitter.com/7x3Vlf9JcA
— Wu Blockchain (@WuBlockchain) January 13, 2021
In China, the price of the most expensive Antminer S19PRO in the current market is around US$80/T. It is expected that BTCST will return to a relatively normal price in the future. The current price is believed to be highly inflated.
Leo Zhan, the founder of Anicca Research believes that miners would try to sell these tokens in the bull market in hopes that speculators would buy during the bear market. More importantly, the price would depend on the price change rate vs. the hashrate change rate.
And of course in mining there’s more than bull and bear trends, depending on price change rate vs. hashrate change rate, we can identify four archetypical phases: pic.twitter.com/tdIlHQE5ZL
— Leo ⛏ (@Leorzhang) January 13, 2021
What Hashrate Tokens Mean For Mining Industry?
A majority of mining hash power for bitcoin comes from China, the official figure estimates it around 61% but many believe underground and unregistered mining farms could push that share even further. These miners can make the most of these tokens by leveraging their mining power for the tokens and sell them in a bull market at a high price.
After the 3rd bitcoin block reward halving in May last year the price of the top cryptocurrency became quite crucial and needed it to be above $14,000 to make a profit. Now that the bitcoin price has risen by more than 3X the profit price, leveraging mining power through mining tokens could be their next option.
The post Bull Run Boosts Hashrate Token Craze, Binance Hashcoin [BTCST] And Poolin Tokens Selling at Inflated Rates appeared first on Coingape.