Bitcoin mining offers many financial advantages, which is why a maximalist like Dorsey decided to get into the business. The CEO of Twitter would consider using staking as a betrayal of the Proof-of-Work mechanism even though he can convert the profits to Bitcoin.

Square and Twitter CEO Jack Dorsey recently stated that he is trying to mine the pioneering cryptocurrency. The investor said on the social network that he is a recognized enthusiast of that cryptocurrency and is in the process. He did not offer many details except that he would have Compass Mining as an intermediary.

It was only a matter of time before Dorsey decided to mine Bitcoin, as he calls himself a maximalist. He is in the group of people who consider Bitcoin the only existing cryptocurrency and rate altcoins in a derogatory way. On other occasions, the investor claimed that what matters most to him in life is this crypto asset.

The Advantages Twitter CEO Sees in Bitcoin Mining

Bitcoin mining offers many advantages when it comes to receiving large sums of money. Investors, particularly maximalists like the CEO of Twitter, can’t pass up the opportunity to get into the business.

This activity is highly profitable, but the investment costs are very high. Mining equipment has very high prices, but it is possible to access it on the second-hand market. However, these machines do not generate much hash rate.

The latter means that their performance is too low in countries where electricity bills are high. In some regions, their productivity can be even lower than the cost of the energy used. For example, it is nearly impossible to operate underperforming machines in some parts of the United States.

In addition to the price of the equipment, miners must also consider the infrastructure necessary to operate. The facilities must be capable of optimally hosting the machines, thus guaranteeing ideal performance. Since these factors pose an obstacle for investors, Dorsey decided to take his first steps with an intermediary mining company.

Deciding between Mining, Buying, and Staking

Cryptocurrency funds can grow in several ways, but some investors prefer to buy and wait. Hodlers bet on the strength of Bitcoin to go up in price in the long term. Other forms of trading consist of buying low and selling high through scalping. For example, investors can increase the volume of coins in their portfolios with the USDT/BTC pair.

Bitcoin funds can also grow indirectly through staking, in which people use other currencies and tokens. They lock a certain number of coins, such as ETH, until they earn interest.

An extremist Bitcoin maximalist like Jack Dorsey would consider that to be a betrayal of the Proof-of-Work mechanism. However, it is impossible to determine whether the Twitter CEO would use Proof-of-Stake to covert earnings to Bitcoin.

Another way to get more Bitcoin is by receiving it as a form of payment for a product or service. The seller can choose the option to accept the cryptocurrency rather than fiat money like the US dollar.

Finally, the activity of mining through machines is also available to investors. Once they have recovered the investment, the equipment continues to generate passive income.

By Alexander Salazar

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