Instead of mining: Matrixport launches cryptocurrency loans with a zero rate
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| Instead of mining: Matrixport launches cryptocurrency loans with a zero rate |
The mining industry has won the trust of investors, but the complexity of cryptocurrency mining is constantly growing, and profitability from one device is falling.
The cryptocurrency industry is relatively young, but complex, and if we compare the pace of its development with traditional industries, then a year of working with crypto assets can be equated to several years of work in a regular business. It is believed that mining was the first incentive for the development of the cryptocurrency industry.
Until 2015, mining brought huge profits, and associated costs were quickly covered. The block reward until 2012 was 50 BTC, and until 2016 it was 25 BTC. Antminer S4 + or S5 models paid off in 3-6 months at a price per device in the range of $ 800-1100. Given that this industry was previously little known, only enthusiasts were ready to invest large amounts.
The mass investor lacked confidence in mining, he preferred not to take risks, believing that cryptocurrency mining could be connected with financial pyramids and scammers. Despite the opportunity to return their investments in a short time and in the future to make a profit, people gave preference to “more real business”. This position has long been held by investors from Russia and the CIS countries, where mining has developed at a rather slow pace compared with Asia and North America.
The situation began to change in the spring of 2017, when Antminer L3 + ASIC miners appeared for LTC mining. As a result, the profit of miners briefly increased from $ 2-4 to $ 300, which caused a great demand for equipment. However, there is a flip side to the coin - even those who had no idea how it works became involved in mining. Naive users invested in schemes that did not give any guarantees and did not have real equipment for mining. The result was obvious - the invested money “burned out”.
The one who managed to make good money on mining understood that for mining cryptocurrencies, not only the monetary factor is important, but also quality resources. First of all, competent investors pay attention to political stability, the legislative framework, the level of the country for investment, and only then on the cost of electricity. For example, in Venezuela, Paraguay, Iran and South Africa, electricity is much cheaper than China, the USA or Canada - less than $ 0.01 per kWh, but these countries are not involved in the development of the mining industry.
As for the countries of Northern Europe and North America, the relatively cheap electricity is the only plus for mining. Unlike China, the cost of labor in these countries is several times higher, as well as the timing of work. Today, China remains the leader in hashrate and the number of mining farms. Since mid-2017, people have been actively investing in mining, which has become seriously taken by large investors, and this has contributed to an increase in the influx from traditional industries. The stability of the industry has increased, as a result of which the investment payback periods have been “stretched”. The difficulty of mining increases every day, as the number of coins always decreases, and the rate grows. Although always 1BTC = 1BTC, $ 300 is already far from equivalent to one bitcoin, as it was in 2016. Therefore, we can conclude that the turnover of financial systems in the crypto industry is much higher compared to the mining turnover. We are talking about financial services: cryptocurrency loans, loans with zero interest and custodial storage.
In recent months, bitcoin is characterized by high volatility, which can be explained by the coronavirus pandemic. Given that the epidemic will inevitably be defeated, and the cryptocurrency rate will stabilize, changing crypto assets to fiat currency or purchasing mining equipment on them will not be the most profitable investment. Many will use a zero-interest cryptocurrency loan, in which there is no risk of liquidation at the time of the loan.
intends to invest bitcoins in the purchase of mining equipment worth $ 2200 per device with an electricity consumption of 3.2 kW * h. The user has a 500 kW farm, and he will be able to purchase 156 miners worth $ 343,200. Let's say today this purchase will cost him 58 MTC at the exchange rate of $ 5900. Many investors believe that if bitcoin rises, they will have to return much more. However, when covering a loan with a zero interest rate, investors return the amount they borrowed, regardless of the rate of the coins at the time the transaction was closed. At the end of the loan, the client returns his assets in the same amount, for example, 1 BTC = 1 BTC, but this amount will be equal to the amount in fiat at the exchange rate not on the day of exchange, but at the end of the contract. It turns out that if the bitcoin exchange rate rises at the time the transaction is closed, the investor will get a good profit. The advantage of a zero-rate collateral is that there is no risk of liquidation, and the only negative is the withdrawal of funds and settlement is carried out only after the end of the contract.
Compared with Asia and America, the CIS countries and Russia are not active in the field of finance - banks and financial institutions do not offer the population to actively earn money on company shares, futures, swaps and options. Therefore, many people have the question: “Where and how to earn at high interest rates, so as not to fall into the ranks of those who expect a return on their investment over the long term?” With the help of loans with a zero rate, you can not only purchase the necessary equipment, but also make money.
This can be done with Matrixport, an international platform for trading, investing, lending and storing the most popular cryptocurrencies, including BTC, USDT and USDC. The platform is managed by Bitmain, a Chinese manufacturer of mining equipment.
Matrixport has a current monthly turnover of about $ 125 million, and assets with a total value of about $ 500 million are held by Matrixport. Matrixport has branches in Hong Kong, Singapore, Russia and Switzerland. In addition, the service has open accounts in American banks, which allows it to legally work with large volumes of investments in cryptocurrencies.
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