Bitcoin has been Raining Gold for Mining Returns as it Hits the Mainstream

Mining / May 12, 2021

Amid Bitcoin’s ongoing rally, skeptics have characterized its rise as ‘just another bubble’. However, analysts are pointing to certain signs that may signal the biggest boom yet for the world’s original cryptocurrency: Bitcoin’s long-awaited entrance into the mainstream.

With the supply of Bitcoin increasing at about 2% annually and demand skyrocketing, experts have good reason to believe that this is not a mere spike before a trough.

Public Support of Bitcoin is Setting Up a Multi-Year Rally

The last Bitcoin rally lasted about two years, nearing its end with a soar in prices in December 2017 and a sharp decline in the months that followed. In early 2018, the digital currency lost about 80% of its value, the so-called bubble seemingly ‘popping’.

Experts have commented that the present rally will have some crucial differences from the previous two-year rally, with additional signs that may indicate the beginning of a new multi-year rally. The adoption of Bitcoin by popular payment company Venmo, which now offers in-app purchases of cryptocurrency, has further driven the attention of the general public toward the digital currency. With advances like these making Bitcoin significantly more accessible to everyday consumers, cryptocurrency comes several steps closer to being the world’s default currency.

Bringing New Value to the World of Finance

Bitcoin is not only entering the mainstream with consumers, but also with corporations’ financial activities. Large publicly traded companies like Tesla and Square have invested billions to put Bitcoin onto their balance sheets, alongside public support from the Federal Reserve acknowledging the undeniable value of Bitcoin. 

“I think bitcoin is really on the verge of getting broad acceptance by conventional finance people.” said Tesla CEO Elon Musk earlier this year. Ignoring this impending tipping point in the mainstream usage of Bitcoin could cost investors dearly in terms of opportunity.

If Bitcoin repeats the level of increase that brought its price from $3,000 in 2020 to $50,000 in early 2021, it could run all the way up to $1 million per coin. These huge jumps in value have been proven possible time and time again, and appear only more likely to increase with backing from these large corporations. 

Bitcoin Mining as the Next Smart Investment

Purchasing Bitcoin miners provides you with the opportunity to obtain Bitcoin at a significantly lower cost, as opposed to direct purchase from an exchange. At a starting price point of approximately $6,000, these mining rigs are capable of unearthing Bitcoin which, at the time of this writing, is valued at $56,000, making mining rigs a lucrative investment. Further, this investment is fully depreciable on tax returns, allowing you to buy Bitcoin at the price of a rig and saving you money at the end of the year.

As Bitcoin’s rise to dominance drives up coin prices, the value of investing in proper mining equipment, hosting, and management services is paramount. Whether investing in cryptocurrency for the first time or planning to expand your mining farm, it is crucial to select proven and reputable partners to minimize risk and maximize potential gains. 

Wattum Management provides a suite of services to manage the mining rigs of customers worldwide. Offering both new and used mining equipment, hosting, management, firmware, and a mining pool, Wattum’s comprehensive expertise results in sound decision making on our customers’ behalf.

U.S. Government Embraces Bitcoin: What this Could Mean for the Crypto Mining Industry

Mining / April 23, 2021

The rise in Bitcoin prices in recent months has been nothing short of meteoric, sparking curiosity around that cause.

According to a report from cryptocurrency news portal CentralBankCurrencies, discreet acquisition of Bitcoins by the Federal Reserve may have been a significant driver behind the crypto market’s recent rally. These acquisitions reportedly took place through at least six separate over-the-counter (OTC) desks, which enable exchange-free crypto trading with large sums of currency. Should this report prove to be true, it would be the latest in a series of encouraging developments in the U.S. government’s embrace of digital currency.

Over the past year, the Office of the Comptroller of the Currency (OCC) released three particularly significant letters, drawing enthusiasm within the crypto community. While a lack of clarity around the regulation of cryptocurrencies had long caused commercial banks to avoid them altogether, major financial institutions are beginning to come around. As they continue their acceptance of this modern form of money, it will eliminate barriers for investment firms and pension funds whose internal bylaws restrict them from managing their clients assets outside of federal chartered banks.

As the banking system continues its evolution, it can be expected that the general public will gradually become more open-minded to the idea of cryptocurrency being part of their everyday life. It is likely that Tesla centibillionaire Elon Musk’s eager embrace of Bitcoin will help accelerate this broad adoption. This begs the question, what could the implications be for the cryptocurrency mining industry?

As Bitcoin continues to pervade the global economy and eventually emerge as a go-to currency for everyday transactions, demand is expected to increase for both mining equipment and the hosting services that are necessary to manage it. While an explosion in demand and a global chip shortage are expected to intensify the scarcity of crypto mining equipment, a number of reputable resellers still have available room for orders to be placed, with companies such as Wattum Management providing additional hosting and management services as they continue to successfully maintain the high demand.  

Naturally, the widespread zeal surrounding cryptocurrency has led to skyrocketing demand for mining rigs and colocation and hosting services, not to mention the currencies themselves. As the price of Bitcoin and the broader crypto market continues to rise, this demand will only increase, making not only premier mining hardware a red hot commodity, but also the companies like Wattum who still have limited units available to order.