How Liquid Bitcoin Hashrate Represents Mining Democratization: GoMining’s Vision

Interest in the globe’s most popular cryptocurrency has experienced a significant uptrend over the upcoming Bitcoin halving scheduled for April 2024. This heightened enthusiasm has already propelled the market upward, with Bitcoin prices nearly doubling since mid-November 2023. While analysts vie to make predictions, the undeniable fact remains that every previous halving has concluded with substantial market growth in the subsequent year, as evidenced by historical data.

Amid the ongoing situation, the Bitcoin mining sector has achieved a historic milestone, with the total hashrate surpassing 600 EH/s for the first time, according to CoinWarz statistics. Despite record-breaking Bitcoin mining difficulty, these numbers indicate a momentous surge in interest within the constantly growing mining industry.

Yet, in many respects, the BTC mining niche remains akin to a private club, characterized by high entry barriers that hinder numerous enthusiasts from entering the field. Setting up a sufficiently large farm to obtain even a theoretical chance of winning a competition for mining a block is prohibitively expensive, resulting in the dominance of major mining pools.

What is Liquid Bitcoin Hashrate?

In an effort to address this problem, the idea of the Liquid Bitcoin Hashrate (LBH) was first introduced by GoMining. This market-leading mining company found a win-win solution for both large computing power providers and enthusiasts seeking an opportunity to enter the domain via tokenizing the generated hashrate. In layman’s terms, the computing power produced by the mining company is reflected in a real world asset (RWA), for instance an NFT, which in turn, is owned by an individual.

This model streamlines all operational processes on the part of the mining company, relieving the RWA owner of the difficulties of building and maintaining a farm. In turn, the mining company receives a substantial influx of investment while earning a commission for maintaining the physical equipment backing the RWA with computing power.

Another significant user benefit that sets LBH apart from many other RWAs is its immunity from common legal issues associated with tokenized property

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Author: Crypto Daily

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