he Bitcoin price rally has paused before it takes the next leg higher to target $40,000, but in the meantime pro traders have ponied up nearly $2.5 million for Bitcoin Minetrix, the new path-breaking tokenized cloud mining venture.
Trading at around $34,000, Bitcoin had entered overbought territory on a technical view, so a pullback from $35,000 was to be expected.
The Bitcoin price is on a tear but switched-on traders are investing in Bitcoin Minetrix and its plans to reshape mining. $2.5 million raised so far, as next presale price rise looms
In the derivatives markets, call options show pro traders are expecting the top cryptocurrency's next key test to be at the $40k level.
If there is a successful breach of expected resistance in the $40k region then the floodgates are likely to open, bringing a march back to Bitcoin's all-time high into view. As we approach the Bitcoin block reward halving event in April next year, market participants can reasonably expect to see Bitcoin hit new all-time highs.
Bitcoin's breakout opens up opportunities in altcoins, as traders begin to seek out the best risk-reward prospects in the fledgling bull run.
Professional traders and savvy investors have been quick to single out Bitcoin Minetrix for special attention in that regard, as seen in the accelerating fundraising the project is witnessing for its novel Bitcoin cloud mining venture.
Billions of dollars to flow into crypto in this Bitcoin bull run – Bitcoin Minetrix is a magnet for those funds
Altcoins that are able to align most closely with the Bitcoin growth story will attract a large share of the billions of dollars in investment flowing into the crypto sector, and Bitcoin Minetrix is right up among them.
Priced at $0.0112, $BTCMTX has only hours left to go in Stage 3 of its presale before the price rises to $0.0113 in Stage 4.
There is just $600,000 left to raise in the current stage (target is $3,101,000), which means the token could sell out early. Prospective token buyers need to move quickly in order to avoid disappointment.
Early investors are also able to earn yield by immediately staking their newly purchased tokens. The annual percentage yield (APY) is 238% at the time of writing. 175 million $BTCMTX tokens have been staked so far by presale investors.
Why Bitcoin Minetrix is attracting pro traders to its Bitcoin mining revolution
As was the case in past bull runs, Bitcoin acts as the bellwether for the entire sector and Bitcoin clones get pulled higher in the slipstream of its rising price.
Chief among the clones is Bitcoin Cash (BCH), which is a fork of the Bitcoin blockchain. Its unique selling point is its 32MB block size compared to Bitcoin's 1MB, which has a theoretical effective size of up to 4MB following protocol changes made in 2017.
The larger block sizes of BCH mean its network has a much higher transaction throughput.
Then there's Bitcoin SV (BSV), which is a fork of Bitcoin Cash and claims a block size of 4GB.
Bitcoin Minetrix takes a radically different approach regarding its value differential over Bitcoin. It is not playing the block-size scaling game. Instead, it has chosen the arguably more fruitful path of solving issues around the dangers of mining centralization and how to broaden the mining base in terms of control of hash power.
Hash power is the measure of computing power used in the proof-of-work mechanism that verifies Bitcoin blocks.
While efforts to improve the scalability of Bitcoin are laudable, BCH and BSV are not Bitcoin and their higher transaction volume has not led to them being used to any great extent for the purchase of goods and services. They look like solutions in search of a problem in the sense that no one is using BCH or BSV to transact in the real economy.
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