BTCST goes for Bitcoin Standard Hashrate Token... but what does it mean?

Many of you have seen this token listed on Binance's Launchpool with still a few days left for farming, but is this project truly about?

We have been present in the first BTCST AMA a few days ago and we are ready to tell you about it.

Bitcoin Standard Hashrate Token

The main idea behind the project BTCST is to provide "exchange-grade liquidity to Bitcoin mining" as you might read on its site.

But what does this means?

This project has aimed at a specific issue which is: Many people lack the capability to acquire the necessary equipment for mining BTC, and even if one can acquire a miner, it is not a competition to giant whales mining at a corporation-scale. In the late years, many people have opted to mine to pools, but even though it's not that profitable anymore as it has become a very expensive activity.

Solo mining from a PC or even an ASIC is not profitable anymore due to the massive mining farms.

Here is where Bitcoin Standard Hasrate Token comes in.

They have managed to tokenize their mining hash rate. This means that every BTCST, besides being a valuable tradeable asset, also has an intrinsic value as hash power AND efficiency.

How is it so?

Every BTCST besides being a tradeable asset also collateralizes Bitcoin mining power when staked. This means that any BTCST can be staked to obtain a fixed 0.1 Th/s of BTC mining hash power at a fixed efficiency level of 60 W/Th per each staked BTCST token.

The outcome of this is that you will be able to claim a Binance-pegged BTC ($BTCB) which can later be bridged to your own BINANCE wallet to receive native BTC.

Binance Proof of Asset (PoA) web page.

Innovating the Cryptoverse.

This is the first time ever that a token collateralizes hash rate to mine BTC, providing exchange-grade liquidity to the mining activity itself. This has generated a lot of expectations as well as a lot of questions regarding the project itself and the immediate future of the token value.

Actually, they have announced a partnership with 5 major mining firms that cover around 12% of the global hash power as BTCST tokenization miners. These are Atlas Mining, BTC.TOP, Easy2Mine, Genesis Mining, and Hengjia.

In their first AMA, the representatives of the project, Alex and Ady, have answered the community's top 20 questions such as the possibility of BTCST being useful to mine different assets than only BTC in the near future, the concern of some community members regarding the additional tokenization affecting the value of the BTCST (as more supply translates into a drop in price), the benefits of earning BTC through BTCST staking instead of traditional mining, implementing a voting system with the possibility of having ETHST in the near future, and many more.

Definitely, the mining possibility creates a lot of expectations as it opens the doors for many of us, retailers a.k.a small fishes to generate a passive income through mining, however, it is a fact that the current value of the asset (64.45 USDT or 20383 satoshis at the moment) does not precisely correlate to the value of the Th/s when buying a regular ASIC. Therefore comments stating an over-rated price of the asset have been frequently present in the community chats.

Definitely, if Bitcoin price keeps on pushing up in the pursue of a new ATH this year (as many have predicted before me), BTCST represents a very interesting opportunity to acquire not only a high-demand valuable asset (the pair BTCS/USDT is already showing an impressive 1.46M 24h volume) but also a collateralized mining asset (even better than Cloud Mining as it has increased liquidity).

Are we entering a new era? Only time will tell. In the meantime, I invite you all to check on the BTCST whitepaper here.

May you all find success and joy.