The cryptocurrency market has experienced a remarkable boom since the beginning of the year. The combined market cap of all the cryptocurrencies has increased by more than 1,000%. The worldwide value of Bitcoin has increased by more than 500% in the same period. Although the cryptocurrency has been around for almost a decade, its remarkable growth over the last year has attracted a colossal amount of new money into the market.
Alex Zhao is the CEO of Standard Hashrate, the creator of BTCST, which brings exchange-level liquidity to bitcoin mining.
What initially attracted you to blockchain and crypto-currencies?
Blockchain and cryptocurrencies are still in their infancy. The huge technological and cultural potential is what attracted me to this sector years ago. Like the rest of the Standard Hashrate Group team, I’m an early adopter of cryptocurrencies. Most of us started mining bitcoins in 2014, long before the bitcoin boom we’re experiencing now. The freedom of money was and is a great attraction.
Can you tell us the story of the origin of the default hashrate?
The Standard Hashrate Group is an open association of institutional bitcoin miners and early adopters of crypto-currencies. Together, these miners account for more than 12% of global bitcoin mining production. After seeing DeFi boom last summer, we started thinking about how we could use our high volume of hashrate to offer investors something new and bridge the gap between Bitcoin and DeFi. Thus was born the idea of creating BTCST, a tokenized hashrate ready for the secondary market. We successfully introduced bitcoin in DeFi in January 2021 by launching BTCST on Binance Launchpool. Since then, BTCST’s TVL has surpassed the $300 million mark and raised nearly $600 million in capital.
For readers who are not familiar with this concept, can you explain what synthetic investments are?
The purpose of synthetic assets is to provide users with exposure to different asset classes without having to physically own the underlying asset. These assets can range from gold to stocks to cryptocurrencies like bitcoin. Synthetic assets offer investors the advantage of owning tokens that store the value of the underlying assets without leaving the cryptocurrency ecosystem. Synthetic assets are decentralized and in some use cases, such as. B. in DeFi strike, greater flexibility, i.e. they are open to all users in different domains and are secured by smart contracts and other methods, and the data are stored in distributed ledgers.
Can you briefly explain what bitcoin mining is, what the hash rate is, and how BTCST rewards token holders?
Bitcoin mining is essentially the process of creating new bitcoins. This is done using sophisticated computers that solve complex computational problems. The hashrate refers to the total processing power used to retrieve and process transactions. The higher the hash rate, the more reliable the blockchain. Therefore, mining is extremely important for the overall stability of cryptocurrencies. BTCST is a token backed by the actual mining power of bitcoins. This means that by holding BTCST tokens, investors can enjoy the benefits of bitcoin mining without having to physically own and operate devices. BTCST betting allows token holders to receive a payout of bitcoins based on the mining performance on which the bet was placed.
Which mining partners are responsible for the actual mining of bitcoin?
Standard Hashrate Group has partnerships with BTC.TOP, Easy2Mine, Genesis Mining, Atlas Mining and Hengjia Group. Together, these miners account for over 12% of the global bitcoin hashrate. With BTCST, these miners receive tokens for their hash rate while retaining ownership of their mining machines. In essence, our partners can sell the hash rate to institutional and private players, giving them immediate access to previously untapped liquidity.
Why should investors profit from bitcoin mining by betting on BTCST instead of investing in cloud mining platforms or buying mining equipment themselves?
Thanks to our boost factor, the BTCST rate can lead to a much more efficient and higher reward bitcoin mining compared to hardware bitcoin mining. Although it is difficult to say exactly how many BTCST will be involved in the mining, if we assume 500,000 BTCST will be involved, then someone betting on BTCST can expect a profit of 11 times. In other words, that’s 11 times more bitcoin rewards than someone mining bitcoins directly or through cloud mining contracts at an equivalent rate. The BTCST course also offers many other benefits, including. B. the ability to mine synthetic PoW assets, such as τBTC or τDOGE, which are linked 1:1 to the underlying BTC or DOGE assets, respectively.
How do you see synthetic assets in 5 years?
We believe that the future of DeFi revolves around synthetic assets and high-quality guarantees. We will continue to see the bitcoin ecosystem grow with new applications, such as synthetic assets, that will increase the value of industries such as mining, which has traditionally been ignored because few players understand what PoW mining is unless they have been involved themselves. Standard Hashrate Group will continue to add value to our ecosystem and build bridges between bitcoin and the DeFi world.
Is there anything else you’d like to share about the band Standard Hashrate?
Ultimately, our goal is to become the version of the Grayscale Bitcoin Trust (GBTC) – a way for investors to access bitcoins as collateral without having to buy, store and secure BTC – to enable bitcoin mining. The Standard Hashrate Group is an open association where any eligible miner can tokenize their hashrate. We want to be the force that brings true hashrate liquidity to mining sites around the world. With our expertise in bitcoin and DeFi mining, we are well positioned to deliver maximum long-term value to stakeholders in the cryptosphere and beyond.
Thank you for this great interview. Readers interested in learning more about this project are encouraged to visit the Standard Hashrate website.
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