Square and Twitter CEO Jack Dorsey said he is “trying” to mine Bitcoin. In a answer To a message on that social network, the investor, who is a recognized enthusiast of that cryptocurrency, assured that it is in process. Although he did not offer more details about it, except that his attempt to mine would have the company as an intermediary Compass Mining.
It is a company that takes care of everything, from the purchase of the equipment, installation, maintenance, etc. In that sense, Dorsey and its clients do not have to worry about the operational steps necessary to start in that crypto business.
On the other hand, it should be noted that Dorsey’s decision to mine Bitcoin was to be expected, as he calls himself a maximalist. The latter is about people who regard Bitcoin as the only truly existing cryptocurrency, giving altcoins derogatory qualifiers. On some occasions, this investor assured that this digital currency is the most important thing in his life.
What advantages does the Twitter CEO see in Bitcoin mining?
Bitcoin mining has many advantages when it comes to receiving large sums of money. Those advantages cannot go unnoticed by investors and even less so by a maximalist like the CEO of Twitter.
Despite the fact that digital mining is an extremely profitable business, the investment costs are high. The equipment to process the mathematical operations known as mining are very expensive. It should be noted that, in the second-hand market, they can be accessed at low prices. However, they are not much hashing power equipment.
The latter means that its performance is very low in countries with high electricity bills. In some regions, its production is even less than the cost of energy bills. In the United States, depending on the state, it is almost impossible to operate with low-performing equipment.
But it’s not just about the price of the equipment, but the infrastructure necessary to operate. The facilities must be suitable so that the accommodation of the machines is optimal for an ideal performance. These factors, of course, are a deterrent for any investor. Therefore, it is normal that the CEO of Twitter, Jack Dorsey of his probable first steps in mining with an intermediary company.
Mining, buying or staking?
There are many ways to grow crypto funds. Some investors prefer to buy and wait. It is about the hodlers who bet on the strength of Bitcoin to rise in price in the long term. There are also other forms of trade buying low and selling high in the form of scalping. In this way, for example, with USDT / BTC pairs, the number of coins in the portfolio can be increased.
The other way to increase Bitcoin funds is through staking. Although this modality cannot be done directly with Bitcoin, it is done indirectly with other currencies and tokens. It consists of blocking a number of currencies, for example ETH, for a period of time, and earning interest for it.
For a maximalist of the most extreme type of Bitcoin, doing this would be like a betrayal of the Proof-of-Work. Although the CEO of Twitter calls himself a maximalist, it is now impossible to determine if he would be able to use the Proof-of-Stake. After collecting the winnings with the staking, they can be transformed into Bitcoin.
Another way to generate more bitcoins is by receiving them as a form of payment. If the person sells some type of merchandise or service, they can sign up for the option to receive Bitcoin in exchange.
Finally, there is mining, which consists of the process explained above with the machines. The good thing about this is that once the investment is recovered, the machines continue to generate totally passive income.