BTCST sets off to solve the problem of a limited number of exit options by bringing exchange-grade liquidity to the Bitcoin mining industry, and in secondary trading, BTCST will perform as a leveraged Bitcoin token free from liquidation risk. BTCST will create an efficient market for Bitcoin’s mining power in ways similar to how Grayscale Bitcoin Trust creates institutional liquidity for Bitcoin.
Four Key Points About BTCST
1. Bitcoin’s leveraged token
BTCST secures dual profits for its holders when the market is on a bull run, due to BTCST’s attributes as Bitcoin’s leveraged token.
BTCST is collateralized by 0.1 TH/s of real-world Bitcoin mining power, which is historically proven to be positively correlated to the performance of the digital gold, and hence the value of BTCST climbs along with the current skyrocketing Bitcoin market. On top of that, BTCST stakers claim Bitcoin mining rewards on a daily basis. If a user started to mine Bitcoin with a WhatsMiner M21s (a classic hardware model of Bitcoin mining) in October 2020, by the time of publication, the value of Bitcoin mined would have risen by 200%; however, the price of the mining machine itself increased 400% during the same time frame.
Therefore, it is safe to call BTCST a leveraged token of Bitcoin.
2. Grayscale-like operations in the mining industry
2020 is the year of Grayscale, and BTCST may prolong the saga in the Bitcoin mining industry. Institutional liquidity injected by Grayscale sparked the bullish market, and BTCST will help release liquidity to the mining industry and enable the execution of liquidity premium in the secondary market.
BTCST creates an efficient market among Bitcoin miners. By trading BTCST, market participants can freely enter and exit Bitcoin mining exposure in any size, at any time, and with low costs. Even miners without mining power tokenized by BTCST can make use of the token to capture the profits or hedge against the risks of mining machine price fluctuation.
3. Enhanced cloud mining
Cloud mining is an imperfect solution to the lack of liquidity, and its reputation is clouded by frequent scams. The legitimate providers also fall short of full transparency.
BTCST is a cloud mining platform deployed on the Binance Smart Chain, with daily payouts executed by the dApp and all data traceable. Binance Pool, the world’s second-largest Bitcoin mining pool, functions as the auditor for BTCST and guarantees legitimacy and transparency.
4. DeFi of 2021
BTCST is a DeFi project without risks of impermanent loss. When a user un-stakes BTCST, the user is safeguarded by code to retrieve the same amount of BTCST along with the accrued Bitcoin mining rewards.
In addition, BTCST has passed the scrutiny of CertiK, one of the world’s leading blockchain security firms, scoring a 98 out of 100 in a security audit.
Disclaimer: The views, suggestions, and opinions expressed here are the sole responsibility of the experts. No Bengaluru Bytes journalist was involved in the writing and production of this article.