Binance, a well-known cryptocurrency exchange, has been navigating the bear market with a variety of its activities. The exchange has again again made the decision to offer help to the Bitcoin [BTC] mining sector.
Binance Pool recently disclosed that has developed a $500 million loan programme for Bitcoin miners in a blog post. This applied to both individual and industrial miners.
The exchange wants to give these miners loans through this scheme. However, the miners will need to provide security in the form of physical or digital assets in order to obtain the loan, which will run for 18 to 24 months.
These loans will also have interest rates that range from 5 to 10 percent.
The most recent endeavor of Binance Pool included more than just this. The exchange wants to launch cloud mining solutions, according to the blog post. Adding to what the same Binance wrote :
“As the cloud mining hash power will be directly purchased from bitcoin mining and digital infrastructure providers, Binance Pool is looking for cloud mining vendors to work with us.”
Binance’s latest project to help distressed miners :
The bear market created issues for the whole sector. In the wake of the decline of the biggest cryptocurrency in the world, the mining business for Bitcoin hasn’t been very lucrative.
The asset has had difficulty rising above $25,000. The profitability of BTC’s mining was affected by this decline.
The profitability of mining bitcoin has drastically decreased since last year, as shown in the graphic above. At the time of publication, BTC was worth $19,807 and its mining efficiency was 0.0736.
It should be emphasized that other factors might also affect a miner’s profitability. The situation for BTC miners, who are already struggling because of the low BTC pricing and rising energy bills, is made significantly worse by the increased difficulty.
Thus, Binance’s most recent move may out to be very advantageous for Bitcoin miners.