US Bitcoin Miners Now Storing Their Bitcoins: What's In Store For Social Miners and Crypto Earners?
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Bitcoin mining remains one of the most prevalent methods for acquiring or earning Bitcoin. However, it's essential to acknowledge its significant energy consumption and the specific machine and computer requirements involved.
Bitcoin mining is the process by which new Bitcoin transactions are added to the blockchain, validating and securing them using computational power. This process, while essential for the cryptocurrency ecosystem, is notorious for its high energy demands. Miners compete to solve complex mathematical puzzles also known as Algorithms, and the first to solve each puzzle validates the transactions and earns newly minted $BTC BTC as a reward.
In previous years, many Bitcoin miners made a living by solving complex algorithms and earning Bitcoin ($BTC ) through a process known as Proof of Work (PoW). This method involves validating transactions and securing the Bitcoin network, for which miners are rewarded with newly minted BTC which are later sold in the market.
The New Trend By US Bitcoin Miners
An astonishing trend has emerged among US Bitcoin miners, with companies like Marathon Digital Holdings choosing to mine and hold (HODL) their Bitcoin rather than selling it in the market. Last month (June), Marathon Digital Holdings refrained from selling any of their mined Bitcoin, adhering to a strategy that prioritizes accumulation over liquidation.
This holding strategy isn't unique to Marathon Digital Holdings. Riot Platforms has also demonstrated a strong commitment to HODLing, not having sold any BTC since January. CleanSpark which is also another notable US miner, has only sold nominal amounts of Bitcoin, reflecting a similar approach. The decision to hold rather than sell mined Bitcoin is influenced by several factors. Primarily, these companies may be anticipating a future increase in Bitcoin's value, choosing to build a substantial reserve of BTC in anticipation of higher prices. By holding their Bitcoin, these miners are positioning themselves to potentially realize greater profits in the long term compared to selling at current market prices.
In a recent interview with Cointelegraph, Marathon’s chief financial officer Salman Khan shared his perspective on Bitcoin as a valuable digital asset. He emphasized that Bitcoin can remain on the balance sheet without incurring storage costs. Khan also stated that Marathon does not need to sell its Bitcoin monthly, as the company strongly believes Bitcoin will reach a new all-time high over time.
Despite Marathon Digital Holdings owning about 18,536 Bitcoin worth over $1 billion, up 48% from 2023's total of 12,538, the company’s confidence in Bitcoin's future value prevents them from selling. They view Bitcoin as a valuable asset that has the potential to appreciate significantly.
The strategy adopted by US Bitcoin miners like Marathon Digital Holdings, Riot Platforms, and CleanSpark to mine and HODL their Bitcoin reflects a calculated bet on the future value of BTC. By choosing to accumulate rather than sell, these companies are positioning themselves for potential long-term gains and contributing to the evolving dynamics of the cryptocurrency market.
An Advantage For Crypto Earners
Did you know that it's possible to own certain cryptocurrencies without spending any money? Thanks to Web3, this has become more feasible in the crypto space.
Earning Through Decentralized Social Media Platforms
Some crypto enthusiasts earn cryptocurrency through decentralized social media platforms like Steemit, Hive, Leofinance, Neoxian.city, Publish0x, and many others. These platforms offer the opportunity to earn cryptocurrency whenever users create content.
This model provides an alternative to centralized social media platforms, where content creators often rely on advert revenue or sponsorships. Instead, decentralized platforms reward users directly, fostering a more equitable distribution of value. It also empowers creators, giving them control over their earnings and reducing dependence on centralized authorities.
Earning Through Crypto Airdrops
Some users also earn cryptocurrency by participating in airdrops, which require them to complete certain tasks to earn valuable rewards. However, it's important to be cautious, as there are many scams and non-genuine projects that use this strategy to exploit users without providing rewards in return.
Airdrops typically involve distributing free tokens to users who complete specific tasks, such as following social media accounts, sharing posts, or joining online communities via Discord, Telegram and others. These tasks can be relatively simple and offer participants a chance to earn valuable crypto rewards. Airdrops are often used by new projects to build community engagement, increase awareness, and distribute tokens widely.
Earning Through Social Mining
Since Web3 is revolutionizing decentralization in the crypto community, a new concept known as Social Mining has emerged, particularly within DAOVERSE, a type of Decentralized Autonomous Organization (DAO). Social Mining has been adopted by various Web3 and cryptocurrency projects, including KAVA, TON, Polygon, WAX, AVAX, and DAOLabs. This model allows Web3 enthusiasts, also known as Social Miners, to contribute to these projects and earn valuable cryptocurrency rewards for their efforts.
Social Mining utilizes blockchain technology to transparently reward individuals for their contributions to DAOs and decentralized ecosystems. Unlike traditional airdrops, which involves computational tasks, Social Mining focuses on social contributions such as content creation, community engagement, and network promotion. These activities enhance project visibility, foster community growth, and drive ecosystem development.
Social Mining stands at the forefront of Web3 innovation, offering a transformative approach to community engagement and value distribution. By rewarding contributions beyond mere computational power, Social Mining pioneers a new era of inclusive participation and decentralized growth in the cryptocurrency ecosystem.
Tap Tap Tap
Another recent method of earning cryptocurrency is through playing Telegram Games, where users tap their smartphone screens to earn valuable rewards. This innovation is made possible by TON Blockchain, showcasing a significant advancement in Blockchain Technology and Web3.
Telegram Games represent a pioneering integration of blockchain technology into everyday interactions on messaging platforms. These games allow users to earn valuable cryptocurrency rewards simply by tapping their smartphone screens and engaging in gameplay. This innovative approach doesn't only gamify the process of earning cryptocurrency but also demonstrates the versatility and potential of decentralized technologies and thanks to TON for making this possible.
What's In Store For Crypto Earners & Social Miners?
The volatility of Bitcoin often influences the entire crypto space, affecting the prices of other altcoins. Despite this, crypto earners find ways to manage their profits and losses amidst market conditions. The drastic fall of Bitcoin, or a Bitcoin crash, is typically triggered by large-scale selling or dumping of Bitcoin, often in response to specific news or FUD (Fear, Uncertainty, Doubt) against Bitcoin. Conversely, Bitcoin's rise can be fueled by significant buybacks from believers in the cryptocurrency.
The decision of US miners to hold onto their Bitcoins can indeed have a significant impact on its price, potentially increasing its worth and value over time. This reduced selling pressure from miners could contribute to Bitcoin's appreciation. As a result, social miners and other crypto earners may see increased rewards for their contributions to the crypto space, further enhancing the value of cryptocurrencies overall.
Share Your Opinion
Since most US Bitcoin Miners are now keen on holding their Bitcoins rather than selling their Bitcoins. How do you think this will affect the Cryptocurrency space? Do you think other Bitcoin miners in other countries would adopt the same action? How do you think this will affect other Cryptocurrency earners? Share your view in the comment section.
Reference Links
https://cointelegraph.com/news/us-bitcoin-miners-hodl-btc-pricehttps://docs.daolabs.com/social-mining-docs
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