Projections for Bitcoin’s price to hit the momentous $100,000 milestone are looking increasingly promising as corporate leaders continue to embrace the digital currency. Perhaps the most prominent development comes from multinational companies both adding Bitcoin to their own balance sheets and accepting it as a form of payment from customers. These include digital payments company Square (whose Cash App has been accepting Bitcoin since 2018) and business intelligence company Microstrategy, which purchased more than $1B worth of Bitcoin in 2020. Among the most common reasons for corporations embracing Bitcoin are financial empowerment for their customers, hedging against inflation, and a belief that crypto is the future of finance, prompting early adoption with a long-term commitment.

Financial Empowerment

The city of Jackson, Tennessee has announced plans to integrate cryptocurrency, with Mayor Scott Conger exploring options to pay employees in digital currency and even mine Bitcoin to hold it on the city’s balance sheet. He proclaimed in a recent tweet, “Utilizing dollar cost averaging in appreciating assets, like #cryptocurrency is one way we bridge the wealth gap and financially empower people.”

Hedging Against Inflation

Nexon, the South Korean-Japanese video game publishing giant, invested $100 million into Bitcoin to hold as a hedge against inflation, as the investment provides security against decreases in purchasing power. The company predicts that this move will protect their purchasing power in the event of a potential currency debasement. 

Owen Mahoney, president and CEO of Nexon, stated: “Our purchase of Bitcoin reflects a disciplined strategy for protecting shareholder value and for maintaining the purchasing power of our cash assets.” Further discussing the benefits of Bitcoin, he added, “In the current economic environment, we believe Bitcoin offers long-term stability and liquidity while maintaining the value of our cash for future investments.”

Meeting Consumer Demand for Crypto Payments

Commercial real estate giant WeWork has also announced plans to hold Bitcoin on its balance sheet. This will occur in tandem with the company accepting cryptocurrency as payment for their services, fulfilled through a new partnership with crypto payment service platform BitPay. “When we think about the workplace of the future and business, we have to consider cryptocurrency a central part of that conversation,” said WeWork chairman Marcelo Claure, “Cryptocurrency helps build a stronger global economy.”

Financial Services giant Mastercard announced plans in early 2021 to support cryptocurrencies directly on their platforms and offer a crypto rewards credit card to the public. Their wide reach will create ripples for public acceptance and the adoption of Bitcoin in daily life.

Palantir Technologies, an American big data analytics company that counts the United States Department of Defense and the United States Intelligence Community (USIC) as its top two clients, has also recently announced that they will soon accept Bitcoin as payment for their services. Chief Financial Officer David Glazer stated that they are considering taking this one step further by including Bitcoin on their balance sheet. Due to large amounts of cash on hand, this would be a strategic move up from use of a treasury, employing a long-term planning perspective.

With speculation that Amazon may soon support payments with Bitcoin and other cryptocurrencies, investors are gearing up for the impact this would have on global crypto adoption and the prices of supported coins. This hypothesis stems from the creation of a new department labelled ‘Digital and Emerging Payments’, suggesting that the behemoth technology company is already well underway in developing these services. 

How to Capitalize on these Advancements

“We’re big bulls,” said Geoff Morphy, President of Bitfarms, “and when you can mine a Bitcoin for under $10,000 and it’s currently in the market at between $50,000 and $60,000, what we enjoy doing is putting it on the balance sheet and then because that’s effectively our adjusted EBITDA, we get the compounding feature of not just having the Bitcoin on our balance sheet from a low cost, but we basically embed our profit in there as well to compound it.”

However, this opportunity is not exclusive to huge corporations and their CEOs. Individual miners can purchase mining rigs and earn a substantial profit from Bitcoin mining. As Bitcoin prices are predicted to increase due to adoption from large, publicly traded companies and booming cities, the time to mine is now. These mainstream developments have increased the safety and reliability of mining return on investment as Bitcoin continues to establish deep roots in both the business and government worlds. Participating in a mining pool ensures steady profits and minimizes financial risk: apply today with Wattum to receive 25% off the initial fee for ViaBTC’s globally ranked mining pool and join global business leaders in capitalizing on future increases in the market for Bitcoin.

Chip manufacturing giant Nvidia has increased measures to ensure GPU cards get into the hands of gamers, rather than cryptocurrency miners. It’s a change that is expected to bring further price increases for GPU rigs, even beyond those brought on by the global chip shortage. In this article, we’ll explain Nvidia’s hashrate restrictions, consider older GPU models, and discuss our recommended alternative: the Nvidia CMP HX Series.

Significant spikes in the price of Bitcoin in 2021 have increased demand for crypto mining equipment, leading miners to buy out entire supply chains of Nvidia GeForce cards, depriving gamers of essential tools for their trade. To level the playing field between their two major customer segments, Nvidia is drawing clearer lines between gaming and crypto mining equipment.

New Releases to Limit Hashrate

Nvidia has implemented anti-mining hardware flags in their stock that will halve the hashrate for Ethereum mining on several leading models. Products released after May 2021 from the GeForce RTX 3080, 3070 and 3060 Ti graphics card lines will feature a “Low Hash Rate” (LHR) sticker, indicating their unsuitability for crypto mining.

This is Nvidia’s second successive deterrent attempt, following a failed one in February with their RTX 3060. The GPU was meant to halve the effectiveness of Ethereum mining rates, a move claimed by the company to be “unhackable”. However, a developer-specific beta firmware driver released soon after easily unlocked the GPUs full mining capabilities, making the item a hot option for mining once again.

This past misfire breeds doubt on the upcoming limiter’s ability to withstand hackers. This will remain unknown until the products’ release; in the meantime, miners can utilize the limited mining-specific cards offered by Nvidia.

The company’s dedicated line for crypto mining, Nvidia CMP HX, offers GPUs. The spot prices on in-stock cards will likely cost 25-75% more than the pre-order price due to a limited available quantity. If the going rate today is $28-$30/MHz, expect these cards to sell for $35-$38/MHz when they arrive in August.

What About Older Models?

Graphics cards released before the introduction of the hashrate limiter are currently out of stock everywhere. Any online retailers with availability that are selling these cards are likely referring to old batches from 2020, still left in a warehouse. Wattum still maintains an inventory of the Nvidia 2070 cards, which remain profitable in addition to being cheaper per MHz.

Both new and old generation card models are of high quality; their functionality in this case is dependent upon your specific needs or preferences. As neither generation is still in production, their resale value holds steady and will only continue to go up as Ethereum (ETH) prices rise, whether they are new or used.

Savvy miners want to purchase hardware that can be resold for the same price or more than you bought it. In the next 3-5 years, if Ethereum (ETH) is trading at $10,000 as projected, mining hardware bought today may appreciate in value, adding to the mining profits earned during those years.

The Best Nvidia Card for Crypto Mining

Should you prefer to purchase cards that will outlast 2 years, alternative models such as Nvidia’s CMP 90HX rig are a notable contender. While they do carry a higher retail price than those designed for gaming, they hold 10GB of memory which will remain functional for your next 3-5 years of GPU mining. Specifically designed for crypto mining, the 90HX uses 25% more power than the 50HX, yet they yield double the cryptocurrency. A slightly higher investment now projects to earn a significantly higher profit throughout the lifetime of the machine.

Since its launch earlier this year, the CMP series has already gained immense popularity. In March, one buyer alone submitted an order worth $30 million, with the units intended primarily for mining on “alternative blockchain networks”.

The 90HX, which is comparable to the 3070 – 3080 RTX GPU mining rig, is our top choice for GPU mining and is currently available in limited quantities. Purchasing now gives you maximum time to profit from rising ETH prices and an increased coin yield before prices increase as demand rises.

Canaan ($CAN), the Chinese supercomputing firm and ASIC mining pioneer, has reported a $33 million net loss for 2020. Bullish Bitcoin prices were not enough to overcome the effects of a global chip shortage, stalling the production of Canaan’s popular Bitcoin mining machines and causing inventory backorders to pile up. These effects were exacerbated by COVID-19 supply chain disruptions, but are beginning to see a significant turnaround.

Their 2020 net loss, as reported in the Bitcoin miner manufacturer’s unaudited financial report for Q4 2020, was notably lower than their 2019 loss of $148 million. As Bitcoin prices hold steady, Canaan shows optimism in this trend of loss reduction.

The company has been consistently reducing their net loss, with Q2 2020 experiencing a 90% year-over-year reduction due to the sale of mining rigs, which experienced significant growth on their gross margins.

Despite reported losses, the company shows optimism for the upcoming year and forecasts a Q1 2021 revenue target of $61 million, with significant growth driven by the large volume of Bitcoin mining hardware pre-orders as Bitcoin prices foresee another climb.

While their mining rigs were selling for $10 per TH/s in 2020, 2021 sales have already been ranging from $50 to $80 per TH/s, and they’re only expected to continue going up.

This activity is indicative of the current demand within the crypto mining industry that only continues to rise, reflecting ongoing global shortages of mining rigs. With Bitcoin further advancing its reach, gaining acceptance and entering the mainstream payment market with services such as Cash App accepting the digital currency on its platform, it’s safe to say that prominent names within crypto mining will continue to see significant growth as the year progresses.

Looking forward, Nancheng Zhang, CEO of Canaan, stated:

“Although the outbreak of COVID-19 caused supply chain disruptions and thus negatively impacted our revenues in the fourth quarter of 2020, our market leadership has enabled us to attain $174 million contracted orders with $66 million of cash advance from customers as of December 31, 2020, thus laying a solid foundation for substantial revenue growth for 2021.”

With many leading mining hardware manufacturers being plagued by supply shortages amidst Bitcoin price spikes, seeing a reach to an all-time high, mining rigs have become scarcer than ever. Proactive resellers like Wattum Management have preempted this shortage, stocking up on inventory of cryptocurrency mining hardware and purchasing over 2,400 Canaan miners in a $13 million deal. The rise in price per TH/s continues with the foreseen steadiness of Bitcoin value, creating an ample opportunity to invest in such hardware and equipment.

U.S. President Joe Biden is reportedly planning to nearly double capital gains tax rates for high-earning individuals through a new bill. This move would increase the attractiveness of Bitcoin mining, profits from which are taxed as income, rather than as capital gains.

Should Biden’s proposal pass, capital gains, which apply to profits gained from the sale of an asset or investment, will be taxed at 39.6%, substantially higher than the current base rate of 20%. Those with annual earnings above $1 million may face rates as steep as 43.4% when paired with the existing investment income surtax, considerably higher than the proposed income tax rate of 39.6% for the highest tax bracket.

The bill is part of Biden’s American Families Plan that targets increased social spending to address deep-rooted financial inequality. This proposal has the potential to reverse the existing structure under which investments are taxed lower than labour, a provision that has inequitably helped the wealthy pay lower tax rates than middle-class families. Utilizing funds gained from this act, the government plans to increase spending on education and children.

A Significant Advantage during Tax Season

While cryptocurrency holdings are still taxable as capital gains, returns from crypto mining are considered by the IRS to be regular income. This discrepancy may cause the nation’s wealthiest individuals to respond by investing in mining equipment to escape the higher tax rate, as opposed to leaning on traditional investments such as real estate. This further divestment by the wealthy out of fiat currency may just be the catalyst needed to push Bitcoin’s price to the long-awaited $100,000 milestone.

As mining becomes a haven for wealthy taxpayers, demand for Bitcoin mining equipment will skyrocket, presenting a lucrative opportunity for those who already own it. Bitcoin miners are also depreciable on tax returns as they utilize computer hardware, providing a 100% depreciation allowance that any computer property purchased or put to use after September 2017 qualifies for. This provides another advantage during tax season while simultaneously avoiding the inflated capital gains tax rates. Bitcoin miners guarantee a return on investment (ROI) as there is a year-round demand for verifying Bitcoin transactions.

Maximizing Profits with a Secure Investment

The process can be compared to purchasing a computer and having a line of customers waiting to use it every second of the day, until the hardware breaks. Most Bitcoin hardware is built with CPU power, or processing power, similar to that which is found in computers and can easily last up to a decade. Bitcoin mining equipment is superior in this case as the hardware is not susceptible to breaks or internal functionality damages, making it a safe and consistent investment that appreciates to higher than its purchase price should the price of Bitcoin increase, as it has been doing as of late. As this price increases and the mining rig produces more money, your profits are maximized with many rigs going for under $10,000: a stark comparison to Bitcoin’s direct market price which has seen to jump to over $55,000.

If you are earning over $1 million and invest in mining equipment, this development provides the potential to move on this opportunity and mine back the full amount to get a full return on your investment. All profits would then be subject to ordinary income tax rates, rather than the capital gains tax rate.

Get Started with a Trusted Resource

Should this bill pass, it will reveal an opportunity to invest in mining equipment before the market hits record highs. In that situation, investors in Bitcoin mining will want to be partnered with an experienced company that they can trust, a role that Wattum is capable of filling. Wattum Management, a Bitcoin mining farm management company, sells a variety of mining equipment, alongside firmware and their hosting, management, and mining pool services. Their premium miners boast high hashrates, competitive timelines for your return on investment, and power efficiency which is guaranteed to help customers maximize their profitability.