Dear GoMining Users,
Amidst the increased volatility in the cryptocurrency market, our team is working hard to guarantee a smooth, secure, and efficient mining experience for everyone. We would like to share information on the reasons behind this decline and explain how you can take advantage of the situation.
Reasons for the Bitcoin Price Decline:
- Compensation for Mt. Gox Clients: The official decision of Mt. Gox to compensate clients affected by the 2014 hack has led to the announcement of a payout of 142,000 BTC. If these clients decide to sell their bitcoins, it could significantly lower the price. The market has already started reacting to this news.
- Actions by the German Government: The German government has moved part of its confiscated bitcoin reserves to exchanges, likely for sale. They still hold around 44,000 BTC, and the market fears that these could also be sold.
- Liquidation of LONG Positions: Over the past day, LONG positions worth more than $500 million have been liquidated, which also provokes the sale of collateral positions.
Although the above-mentioned events have influenced the current market state and the Bitcoin price in particular, please note that panic rarely turns out to be a winning strategy. Considering all potential risks and opportunities is essential during these market-shaking periods. Here are some points that might also be considered:
- The market sentiment may change: Large investors may take advantage of the market panic to replenish assets at low prices, which could eventually trigger growth. Governments around the world collectively hold about $18 billion in BTC (according to Arkham). Purchases of ETFs after approval amounted to $32.4 billion.
- Opportunities for Miners: Currently, the pool payout for 1 TH is 0.00000082 BTC. Many miners around the world will not be able to withstand such a low bitcoin price and will be forced to shut down their equipment. This will lead to an increase in pool payouts. Over the past two weeks, mining difficulty has decreased by 5%, resulting in a 6.5% increase in pool payouts per TH.
You, as GoMining clients, are in a favorable position compared to many other BTC mining market participants due to access to paying electricity bills for your digital miners at a rate of $0.05, which is significantly below the average market price. Additionally, you are eligible for additional discounts on maintenance for up to 20%. Please check the Maintenance Discount section on the home screen of your app to see what discount you have at the moment and how to increase it.
Here are some tips that might help you leverage the potential risks:
- Always try to pay for electricity and maintenance with GoMining tokens — this drastically affects profitability.
- Whenever possible, try to reduce the energy efficiency of your equipment — this also significantly affects profitability.
- Avoid making impulsive trading decisions, as the market situation may turn around soon, so you may lose potential profits by selling at the low.
Our team will always remain committed to providing you with a fair and convenient experience. Please follow us on social media for the upcoming updates.
Sincerely, The GoMining Team
July 5, 2024
