Like crypto lending platforms, mining companies face huge cash flow challenges due to the bear market. While industry experts agree that the business is no longer profitable for BTC under $ 20,000, Mohamed El-Masri need not be of this opinion. Founder and CEO of Permian Chain, a Canadian – based cryptocurrency mining company, believes the underlying value of bitcoin is not in line with the market price.
Know how to take advantage of the mining difficulty adjustment algorithm
If he recognizes with certainty that BTC will not allow miners less than $ 20,000 to get satisfactory returns, Mohamed El – Masri will not leave it unavoidable. He claimed that the miners who do not do it in such conditions are primarily those who do not take advantage of economies of scale and low – cost energy sources. Permian Chain CEO also said that the they did not rely heavily on the fundamentally changing fundamentals of bitcoin. In particular, he mentioned the role of the difficulty of adjusting mining.
In fact, this one rewards miners who have maintained regular activity on the Bitcoin network despite the bear market. Mohamed El-Masri recalled that this basic principle of bitcoin operation allows knowledgeable miners stay on course to maximize their profits in the event of a bull run. ” Profitable bitcoin mining is largely the result of an efficient and highly skilled team of professionals who can maintain uptime, even during the $ 20,000 bitcoin market. “, he confirmed.
Basics that take time to come to light for the masses
CEO Permian Chain also urged industry players to rethink their views on mining profitability. While a fall in BTC to levels well below $ 20,000 undermines the profitability reflected in monetary value, the reality is very different in terms of bitcoins. Mohamed El-Masri explains that this phenomenon is the result of a massive departure of miners from the network, which naturally reduces the difficulty of mining.
” When the difficulty rate drops, the mining process becomes less difficult. Therefore, it increases the chances of a miner earning bitcoins more often than when the difficulty rate is high. In my personal opinion, the underlying value does not match the bitcoin market price. These basics take a long time to clear to the masses “, he said.
It is therefore essential to master the basics of bitcoin and reap its benefits for a miner who wants to stay profitable, no matter what the market trend. While the monetary value of bitcoin allows the miner to immediately appreciate the profits it generates, the underlying value of the asset is the one that will allow it to maintain its activity over time.
Source: Bitcoin News
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Luc Jose Adjinacou
Far from dampening my enthusiasm, an unsuccessful investment in cryptocurrency in 2017 only increased my enthusiasm. So I decided to study and understand the blockchain and its many uses and express my pen information related to this ecosystem.