With the continuous development of the digital currency industry, mining as a 0-level market allows investors to obtain the most primitive digital currency, thus becoming the most upstream of the entire industry chain.
When the price of digital currency proliferates, miners can also get a high and stable income from it, and mining farms and miners can also be used as fixed assets. These benefits make mining a choice for more and more investors.
At present, the upstream mining industry is facing many challenges. How to hedge this part of the risks, ensure the income of miners, and promote the industry’s sustainable development is an urgent problem that needs to be solved now.
In this context, if the introduction of brand-new financial tools, will it be possible to ensure the steady development of the mining industry?
1. Mining + financial tools to protect the rights and interests of miners.
For miners, they are most concerned about stable income and returns, and the combination of financial tools and mining can achieve this goal.
Many miners may face cash flow problems, and these problems can be solved well through financial tools such as pledges and borrowings. Therefore, the specific application scenarios are mainly divided into the following aspects:
- Cryptocurrency mortgage: When the Token price drops, miners can obtain liquidity funds by collateralizing digital currency loans, so that they can pay costs, expand production, etc.; when the currency price starts to rise, miners can redeem the mortgage again Token, thereby improving the utilization rate of funds.
- Fast transactions: Combining mining and financial tools can open up mining pools and transaction channels. After successful mining, miners can conduct fast transactions through financial tools, allowing miners to obtain stable, timely and safe income.
- Hedging: Mining in a bear market, many miners are most worried that the currency has not been dugout, and the currency’s price is falling. When the currency is dug out and then sold, the currency’s price has fallen a lot, and a lot of invisibly lost. If the mining of the coins in the future can be sold at the current price, the mining income can be locked in after the coins are mined in the future, and hedging is such a financial tool.
- Financial management services: When miners with low-risk appetites mine Bitcoin, they may be more inclined to stabilize earnings and returns. Therefore, currency-based financial instruments can meet the needs of such miners at this time, and idle digital currencies can purchase fixed-income low-risk products to obtain corresponding benefits.
- Custody service:Digital currency is a digital asset. Finding a reliable custodian can help reduce the risk of asset theft. This is mainly suitable for miners with large amounts of digital currency.
2. Financial products help to inject new potential into the mining industry.
The assistance of financial products can help miners and an injection of new potential energy for the entire digital currency mining industry. Furthermore, the combination of mining and financial products can connect miners, on the one hand, connect to a more professional digital currency market, on the other hand, thereby promoting the stability of miners’ income.
At the same time, as the income of miners continues to stabilize, the digital currency mining industry will be more complete. This kind of cross-border collaborative cooperation fills the financial needs of miners in all aspects, which is also conducive to the stable development of the mining industry.
Correspondingly, this will also make more OTC capital more willing to enter the digital currency industry, enhance the confidence and motivation of capital, and promote the integration and development of the upstream and downstream ecological chains.
3. Summary and outlook.
On the whole, the integration of financial tools and the mining industry has excellent benefits for both individual miners and the entire mining industry.
However, financial instruments are always a double-edged sword. Although they can help miners obtain higher returns, they also carry certain risks.
Therefore, digital financial tools are more suitable for miners who mine by themselves. These miners’ daily digital currency income will be directly injected into their wallets, which facilitates the free circulation of various platforms and completes the turnover of funds.
At the same time, miners who use finance also need to have a certain degree of risk-bearing ability, and need to calculate cash flow, assets and liabilities, etc., at all times to prevent liquidation or failure from returning loans.
With the derivation and development of more financial instruments, it is believed that in the future, there will be more innovative financial products that can help miners hold their profits and open a new era of digital mining.