Bitcoin sliding, analysts explore altcoin alternative
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The Bitcoin price has fallen below $40K, stoking fears of even more downside. As such, traders are seeking alternative projects unaffected by the recent pullback.
One such crypto is Bitcoin Minetrix, a project that enables users to cloud mine Bitcoin by staking BTCMTX.
It has already raised over $9 million.
The project incentivizes early buyers, with the price incrementally increasing throughout the presale.
Currently, BTCMTX is available for $0.013.
Market participants can buy BTCMTX from the Bitcoin Minetrix website using USDT or Ethereum (ETH).
BTCMTX is an ERC-20 token and can be stored in Ethereum-compatible wallet.
Throughout the presale, holders also have the option to stake their tokens.
Rewards are based on a variable APY subject to the size of the staking pool. Currently, staking offers a 72% APY.
Mine Bitcoin
Bitcoin Minetrix’s main allure is enabling users to mine Bitcoin.
Unlike traditional Bitcoin mining, no specialist hardware or technical know-how is required.
Users simply need an Ethereum-compatible wallet and BTCMTX.
Once cloud mining goes live, users will visit the Bitcoin Minetrix website and stake their BTCMTX in exchange for Bitcoin mining credits.
These credits are non-transferable ERC-20 tokens that they can burn for cloud mining power.
This process is seamless and ideal for beginners.
Furthermore, the decentralized and transparent nature of Bitcoin Minetrix eradicates the risk of cloud mining scams.
The project also offers convenience, removing all space and noise constraints from the user and enabling them to mine Bitcoin remotely from anywhere in the world.
Tokenomics and utility
Despite its value-driven use case, one of Bitcoin Minetrix’s main strengths is its tokenomics.
With notable utility and several mechanisms to reduce sell pressure, the project looks to create an environment of high demand and low supply.
Users require BTCMTX for staking, providing a steady and predictable demand stream.
Meanwhile, the supply will be limited, with many tokens being locked for staking and rewards paid in mining credits, not BTCMTX.
Staking is a way to stabilize an asset, reducing sell pressure while rewarding the community. However, Bitcoin Minetrix’s added step of paying staking rewards in a non-native token offers an alternative.
According to its website, 42.5% of tokens have been allocated to Bitcoin mining, 35% to marketing, 12.5% to staking and 10% to community.
Bitcoin-related altcoins often outperform BTC
Lately, some Bitcoin-adjacent crypto assets have seen outsized price gains compared to Bitcoin itself. These alternative projects generally have lower market capitalization.
As a result, less capital inflows can drive more pronounced price volatility.
In 2022, Bitcoin rose 77% while Stacks, a Bitcoin layer 2 solution, surged 377%. Other ordinals-based projects like ORDI and Multibit saw triple digit percentage returns.
Looking ahead, some speculate that assets further tied to Bitcoin’s performance may benefit from the upcoming Bitcoin halving event in the next three months.
They believe the deepening scarcity from reduced Bitcoin emissions could lift prices across Bitcoin-linked networks.
One example is Bitcoin Minetrix, which dispenses platform rewards predominantly in BTC.
Analysts bullish on BTCMTX
Industry pundits have weighed in on Bitcoin Minetrix’s potential, with YouTuber Jacob Bury recently highlighting the project’s early success.
In the analysis, Bury explains one of the reasons for its prosperity is that “it wants to be a solution so ordinary people can mine.”
Meanwhile, analyst ClayBro stated that Bitcoin Minetrix “could be the easiest way to mine Bitcoin.”
The project has also been picked up by top media outlets, receiving coverage from the likes of crypto.news.
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