On the 25th of January, the SEC announced that it would be pushing back its decision regarding the approval of a spot Ethereum exchange-traded fund (ETF) from Grayscale Investments. Earlier this year, 11 spot Bitcoin (ETFs) were approved by the SEC, so crypto enthusiasts were hoping for a swift approval for the Ethereum ETFs too.
However, the SEC always likes to make it difficult for the crypto market, so we will have to wait before we find out their decision. This makes it a very interesting time for ETH investors, is this a sign they should be selling the altcoin, or is it actually time to buy more before a pump?
We will get into that later. First, we want to look at a Bitcoin (BTC) alternative cryptocurrency project that has spared investor frenzy. Bitcoin Minetrix (BTCMTX) could actually help Bitcoin reach record highs thanks to its solution for its mining issue, so let’s take a deep dive into its features now.
Bitcoin Minetrix- This Bitcoin alternative could change how we mine crypto
We all know that one of the most controversial practices in the crypto world is the mining of currencies. Unlike proof-of-stake tokens, the mining of crypto uses a lot of energy, and environmental groups are up in arms about this, especially when it comes to Bitcoin (BTC). New project, Bitcoin Minetrix (BTCMTX), might have the solution to this problem.
After its initial launch, many investors presumed this was a niche token so its fundraising started slow. However, once word spread about how it could be a cheaper and greener way to mine BTC, the presale really started to take off. It has now entered its 22nd stage and has raised just under $9.5 million. This large figure shows that the crypto whales have also taken an interest.
While everyone may be aware of the outside pressure that Bitcoin mining comes under, they may not be aware that most people within crypto circles are also fed up with the mining sector. This has everything to do with crypto’s anti-bank and decentralized model that is supposed to give individuals complete control over their assets.
It is not a good look for the market when its number one token’s mining process is more comparable to the mainstream capitalistic banking model. Originally, before Bitcoin exploded in popularity, it was possible to mine Bitcoin from your own house if you had the technical know-how.
Now, however, since its price has skyrocketed, Bitcoin is almost exclusively mined in massive data centers that require a small town’s worth of energy to maintain. This obviously costs huge sums of money and thus has squeezed out the 99% of everyday investors who might wish to mine BTC.
The Bitcoin mining solution is a combination of staking and cloud mining. We are sure readers all know how the staking works, but cloud mining was actually the original solution to the Bitcoin mining problem. In theory, investors would enter into a cash contract with mining companies that would lease them the ability to mine their own BTC.
#BitcoinMinetrix Stage 22 is now underway! ✅
What’s the most significant misconception people have about #Bitcoin mining? pic.twitter.com/Ye53KA7WKb
— Bitcoinminetrix (@bitcoinminetrix) January 26, 2024
How staking makes cloud mining useful again
Unfortunately, this, too, has failed as the mining companies are charging exorbitant fees and, even after that, demand a share of your yields. This isn’t even the worst-case scenario, as the sector is filled with scammers who lure in miners with initial success, then pull the rug from under them and keep their money.
Adding staking to the mix is crucial as it puts the power back into the everyday investor’s hands. They can hold onto their staked BTCMTX and earn a generous APY%, or they can exchange them for mining credits. These non-transferable, secondary ERC-20 tokens have only one function: to be burned in exchange for mining time or a share of the yields.
The whole process is a cheaper and greener way to mine Bitcoin, so you can see why the project sparks investor frenzy. We should also mention Bitcoin Minetrix is a Binance Chain Token so you have cheaper and faster transactions compared to coins on the Ethereum network. It really is a home run of a project.
The price of Ethereum is rising despite SEC delay, time to buy?
A very interesting wrinkle in all the news about the SEC delaying their Ethereum ETF verdict is that the price of Ethereum (ETH) has actually been going up since the news broke.
We are facing a very interesting 35 days until the SEC’s verdict. Potential investors would do well to study the price of Bitcoin before its ETFs were approved. It pumped all the way up until the announcement, and then investors sold out in mass numbers. This was foretold by a lot of experts, and it could happen for ETH investors too.
History loves to repeat itself when it comes to crypto, so we would recommend purchasing ETH right now. However, on the days leading up to and immediately after the due date for the SEC verdict, we think this would be one good time to have paper hands.
Conclusion
So, we are entering into a very interesting month for ETH investors, while we think the price may rise all the way up to the SEC due date, it could then lose a lot of its gains just like Bitcoin did. Bitcoin Minetrix, on the other hand, is closing in on the end of a very successful presale, and we think it is going to really pump once listings begin. It is the perfect time to buy now before the inevitable pump.
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