Bitcoin miners should pay costs in depreciating currency — Ledn exec

Bitcoin mining companies (BTC) should handle their Mines Bitcoin and use it as collateral for Fiat denomination loans to pay operating costs instead of selling BTC and losing the reversal of an asset that miners expect to advance to price, according to John Glover, chief investor investor in Bitcoin Lending Firm.

In an interview with Cointelegraph, Glover said pressing BTC brings many benefits including, price appreciation, taxes, and the potential to make excessive income by lending to the BTC held in corporate wealth. The Executive added:

“If you are mine, you are developing all this Bitcoin. You understand the thesis behind Bitcoin and why it is likely to continue to appreciate in the future. You do not want to sell any of your Bitcoin.”

This debt-based approach is similar to companies such as strategy, which releases corporate debt and equity to finance the acquisition of Bitcoin and income from the variations of BTC foundations and the fiat currencies raised by the corporate capital are denominated.

Bitcoin -supported loans can be an important lifeline for miners who compel the highly competitive industry, face to face increasing pressure due to ongoing trade tensions brought by Trump administration's trade administration policies and macroeconomic uncertainty.

Related: Riot platforms get $ 100m 'Bitcoin-Back' loan from Coinbase

The trade war puts more pressure on the Beleaguered's mining industry

The Bitcoin mining industry is characterized by high competition and capital costs that increase over time as a stronger computing source is used in mine blocks and secure the network.

U.S. president's trading tariffs have dumped a cloud so far competitive sectors, raising the fear that import duties will increase the cost of mining equipment, such as specific integrated circuit (ASIC) applications, at unstable levels.