Binance, the leading global cryptocurrency exchange, has ventured into a new realm of business: the Bitcoin mining industry. This groundbreaking venture starts with a bang, offering a subscription-based cloud service dedicated to the mining of the world’s first digital currency, Bitcoin.
Binance ushers in a new era of Bitcoin mining
As of June 15, this cloud mining service is open to subscribers interested in delving into Bitcoin mining but lack the necessary hardware.
Binance offers an appealing solution with the purchase of hashrates—the computational measure crucial for verifying and authenticating Bitcoin transactions on the blockchain.
The pricing is structured around the Terahash per second (Th/s) metric—a unit signifying the mining speed. Currently, Binance is trading 1 Th/s at a rate of $10.7280, strategically divided into $1.17 for the hashrate and $9.558 for electricity costs.
An increased hashrate proportion increases the potential income in Bitcoin earnings over the mining duration.
The subscription service for Bitcoin mining remains operative for 180 days, or approximately six months. For each Th/s procured, users are projected to amass 0.0004338 BTC during this timeframe.
Facing regulatory hurdles
Unfortunately, this service launch doesn’t include U.S. based crypto investors. Following the recent Securities and Exchange Commission (SEC) crackdown, the company reassured its international user base, stating, “Binance.com is a separate entity and our users will not be impacted by issues at Binance.US.”
The legal drama intensified when SEC claimed that Binance’s U.S. entity was functioning as an unregistered exchange, broker, and clearing agency. In response, Binance.US fortified its legal team by recruiting former SEC enforcement co-director, George Canellos.
The brewing legal storm has stirred the cryptosphere. Observers, like former SEC internet enforcement chief John Reed Stark, note the company’s proactive strategy in hiring top-notch defense attorneys in anticipation of possible criminal prosecution.
Despite the daunting prospect of potential legal battles and revenue loss in the U.S. market, Binance maintains its global operations. The launch of the Bitcoin cloud mining service could bolster Binance’s revenue stream, especially given the increasing mining difficulty for Bitcoin.
The recent peak in Bitcoin’s mining difficulty suggests that users with a lower amount of hashrate might struggle to achieve substantial gains. Hence, this new service could provide the much-needed lifeline for less-equipped miners and sustain the company’s growth trajectory.
As Binance embarks on this exciting journey, only time will tell how this venture influences the world’s largest crypto exchange by volume and its global clientele.
Whether this strategic move will navigate the complex regulatory landscape and how it impacts Bitcoin miners and investors worldwide remains to be seen. One thing is for sure; Binance is not backing down in its quest to dominate the crypto world.
