How does the overnight rate affect the profitability of cryptocurrency mining?

1 answers

• Hove CaseMar 24, 2021 · 5 years ago
  The overnight rate can have a direct impact on the profitability of cryptocurrency mining. When the overnight rate is high, it increases the cost of borrowing for miners, which can eat into their profits. This is especially true for miners who rely on borrowed funds to finance their mining operations. Higher borrowing costs can make it less attractive to continue mining, as the potential profits may not outweigh the increased expenses. On the other hand, when the overnight rate is low, it reduces the cost of borrowing, making it more profitable for miners to continue their operations. Lower borrowing costs can also encourage miners to invest in more efficient mining equipment, further boosting their profitability.
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