Binance launches bitcoin mining as a service offering – in USA front against SEC strengthened

Originally posted here.
By: Stephan Fiedler

Overview

Binance International immediately offers Bitcoin mining as a rental service. Prices start at just under 11 US dollars for half a year. Meanwhile, Binance.us has […]

The Post

Binance International immediately offers Bitcoin mining as a rental service. Prices start at just under 11 US dollars for half a year. Meanwhile, Binance.us has achieved a first success in its lawsuit with the SEC.

Bitcoin mining as a method of earning money requires precise calculation – we have explained this in detail for you here and here, for example. Nevertheless, Binance has now launched an offer under the title “Bitcoin Mining Cloud” and this is at least worth a look. In the service announcement, Binance itself does the model math and describes the procedure.

With Binance Bitcoin Mining , you rent computer capacity and pay the electricity costs. The entry-level package starts at 1 terahash per second (TH/s) and you have to subscribe for 180 days. Binance will then do all the other work for you. The actual bitcoin mining is scheduled to start on June 22 and end on December 18. For this period, Binance charges $10.728 for 1TH/s of computing power, which breaks down into $1.170 for hardware rental and $9.558 for electricity. Binance forecasts a yield of 0.00000240 BTC per day, which extrapolated over 180 days would result in 0.0004338 Bitcoin distributed to you. Multiplied by the current Bitcoin price of around 25,000 US dollars, the monetary return would thus be 10.845 US dollars.

This makes it clear: Binance Bitcoin Mining will – as of today – only be worthwhile if the price of BTC increases noticeably until Christmas time – or if you are interested in mining Bitcoin yourself for individual reasons. On the other hand, you are close to the profit zone with Binance Cloud Mining, which would not be possible with private BTC mining in Germany at local electricity prices.

US court: Binance and SEC to find compromise on partial issue

Bitcoin mining is offered by Binance International, but not in the US by the crypto exchange’s offshoot there. This is because Binance.us was sued by the U.S. Securities and Exchange Commission (SEC) last week and apparently wants to avoid provocation. The business news agency Bloomberg  reports on an initial court hearing in which the SEC wanted to achieve the freezing of deposits at Binance.us. But the court reportedly told the two litigants to find a compromise in the interest of customers as well, and both Binance.us and the SEC agreed. As a result, Binance can continue to operate its separate U.S. business for the time being.

Conclusion: Binance International with fair offer for Bitcoin mining

We have explained to you here why the SEC action in the US has no direct impact for European Binance customers. With BTC mining as a service, Binance International has put together a fair offer, but its profit prospects are directly related to the price development of Bitcoin. At the end of the day, from an investor’s point of view, it doesn’t make much difference whether you buy Bitcoin on the open market or mine it via Binance BTC Mining for a service fee.

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