In this day and age it's not just cryptocurrencies that have gone mainstream as a viable investment option, it has also created a whole economy around it, especially the mining industry. What started out as a way to promote the use of cryptocurrency and as validators became a multi-billion dollar industry. It has also led to a cold war of sorts among countries to become a leading hub for mining. China, the unanimous leader in the crypto mining industry with a market share of above 70% banned all forms of crypto mining in the country in May this year, following which the likes of the United States, Russia and Kazakhstan have made changes to attract more miners to their country.
The mining industry is thriving and set to increase its profitability with the rising price in the crypto market, however mining is not everyone's cup of tea as it involves a lot of hardwares, complex setting up procedures and high cost of operations. While many new entrants are deterred by the complexities, several experienced traders looking to get involved with crypto mining often face a setback due to high operations cost. Cloud mining is something that is often advised for these people, but then that is another complex story on its own. However, crypto is famous for finding new use cases and many upcoming startups and established companies are looking to offer mining profits to users without them really getting involved with the process.
The most common option to get involved with crypto mining without actually getting involved with the crypto mining is buying shares of publicly listed mining companies. There are several public companies listed in the US including 8Hut mining, Hive, Marathon and several others. Another prominent use case that has surged the ladders of popularity includes mining coins or mining tokens. Where people can simply buy these mining tokens and the issuer would take the burden of setting up the mining farms, setup cost and electricity costs, while the holders of the token reap the benefits of the mining profits.
What Makes Mining Tokens So Popular?
Crypto mining, especially Bitcoin mining has become very difficult at an individual level due to high mining difficulty and cost of mining equipment added with global mining chip shortage. However, with rising prices the profitability for miners is also on the rise. Also mining offers a reliable income source since miners will remain profitable as long as BTC price is above $15K. At present Bitcoin is trading around $69K, thus profitability is considerably high.
The mining token projects not just set up and mine cryptocurrencies, it also resolves and works towards several miscellaneous hurdles that come along with large operations. The mining token team Construction and maintenance of data centers and high-voltage infrastructure
- Purchase and international logistics of equipment
- Setting up equipment and developing software integration with pools
- Service maintenance and equipment repair
- Building relationships with regional authorities and creating legal operating procedures
- Customer support and legal support
Among hoards of projects that milk on the trend, one mining token that seems to have got it right is GMT. GMT holders receive daily BTC income from the pool, where the computing powers are directed, into the BTC wallet. To gain profit buyers need to register an account on the website, provide their Ethereum and BTC wallet addresses, where the mining income will be transferred. By investing in the GMT token, users are investing not only in a growing exchange-traded asset, but at the same time in an asset that brings passive daily income. Such a token structure creates financial support for the investor in case of market volatility or provides additional income. The profit is paid out directly to the holder's wallet from the pool.
Will Crypto Mining Tokens Surge During Bull Run?
Every crypto token is expected to surge to new all-time-highs during bull run, be it an unknown just listed token or a decade old one. However, mining tokens would definitely be the long term investment type given even meme currencies such as Dogecoin and Shiba Inu also surged to new all-time-highs (ATHs). With major financial giants shifting their interest towards the mining industry as the likes of BlackRock and other Wall Street giants have already started to pour millions into publicly listed crypto mining companies.
The Crypto Mining industry is currently being industrialized and on the verge of a breakout moment. Many mining companies have already turned into unicorns, but mostly people can only invest in shares and make profit on its market rise. However, the mining tokens in general offer a dividend of the mining profit ensuring a source of passive income irrespective of the market conditions.