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Binance Bitcoin Mining: How to Join BTC Crypto Pool Without Forking Out For a Rig

Last Updated June 26, 2023 10:43 AM
Teuta Franjkovic
Last Updated June 26, 2023 10:43 AM
Key Takeaways
  • BTC cloud mining service started on June 15
  • Because Bitcoin mining rig is expensive, most miners subscribe to mining pools
  • Binance Pool unveiled BTC Transaction Accelerator to streamline BTC network transactions, mitigating potential congestion issues

Recently, on June 14, Binance announced the beginning of another round of subscription-based cloud mining pool services for Bitcoin.

The biggest crypto exchange seems to be carrying on with business as usual despite the recent Securities and Exchange Commission (SEC) allegations.

How to subscribe to a Cloud Mining product?

According to the company, Binance Cloud Mining enables users that don’t have access to mining equipment to earn mining rewards from the Binance Pool. One can purchase hashrates from the Cloud Mining products and start accumulating rewards in your Funding Wallet.

Here is how :

1. Log in to your Binance account and click [Earn] – [Binance Pool ]

 

2. You will see all the available Cloud Mining products under [Market]. Choose a product and click [Buy Now].

3. Adjust the hashrate to purchase and choose the currency to use. We support USDT (the USDT-to-USD exchange rate is 1:1).

You will see the total payment amount, the estimated start time, and the duration. Read and agree to the service agreement and click [Confirm].

4. Once the order is confirmed, Binance will deduct the corresponding amount from your Spot Wallet. Please ensure you have a sufficient balance in your Spot Wallet.

Binance warned that once the order is confirmed, one can not edit or cancel.
“Subscription opens every Thursday from 04:00 (UTC) to the following Monday at 02:00 (UTC). The total payment amount includes the electricity fee and hashrate fee for your Cloud Mining order. You will receive the mining output as revenue. Please note that after the subscription expires, the fees you paid will not be refunded,” the company said..

Users can acquire hash rates and start earning mining rewards in their funded wallets on June 15 by subscribing to the latest batch of cloud mining items. For retail customers, Bitcoin mining hardware and software are expensive to buy, operate, and require a lot of electricity.

This problem may make mining Bitcoin less lucrative for lone miners. Therefore, the majority of miners join mining pools where they work together to mine blocks and share profits according to each entity’s participation. The company said that the purpose of Binance’s mining pool was to increase miners’ income by enabling them to buy hash rates and get mining incentives.

Back in November, 2022, Binance Pool made its cloud mining service  available for consumers to subscribe to and purchase hash rates. A severe winter storm in North America in December 2022, almost a month after introduction, caused power interruptions for Binance’s cloud mining services. To make up for the power interruption, the exchange announced a three-day extension of the cloud mining subscription.

The most recent development coincides with increased regulatory oversight and enforcement actions against the cryptocurrency exchange in the US. The US Securities and Exchanges Commission (SEC) sued Binance on June 5 on the grounds that Binance sells unregistered securities.

Following the lawsuit, the regulator issued Binance a temporary restraining and show cause order, requiring the exchange to freeze assets and provide justification for not granting a preliminary injunctive ruling. A summons to appear before the Columbia District Court within 21 days was sent to CEO Changpeng Zhao, Binance, Binance US, BAM Management Trading, and other parties on June 7.

Binance Eliminates Over 100 Trade Pairings

Binance deleted over 100 advanced trade pairings, including BCH/BTC, DOT/BTC, and ATOM/BTC, in the face of intense regulatory pressure. On June 7 the cryptocurrency exchange announced the removal of the trading pairs.

Following careful analysis, Binance.US deleted the advanced trading pairings for BTC and BUSD, according to the blog post. The withdrawn trading pairs ceased to exist on the trading platform on June 8, according to the notice, while deposits and withdrawals will continue to run as usual.

Another statement from June 15 reveals that the exchange has eliminated other trade pairings . The cryptocurrency exchange assured consumers that their assets were secure on the system despite failing to provide an explanation for the change.

Binance (BNB) Will Not Mine Bitcoin – CZ Zhao

Few weeks ago, in his blog , Binance’s CEO Changpeng (CZ) Zhao said that the is not currently engaged in cryptocurrency mining and has no plans to do so. Due to the extremely unique nature of Bitcoin (BTC) mining as a company, this choice was made. Additionally, using it demands too much hardware and skill.

As a result, Binance (BNB)’s competitors in the mining industry often have more advantages. It will continue to run its mining pool at the same time, which should not be mistaken with hash mining itself.

CZ went on to explain:

“We’re happy that miners use our pool and have Binance’s liquidity to help cover their operational costs. We provide miners with an integrated service but don’t do the mining itself. I believe mining is very important, and there are many misconceptions about it, but it isn’t our core expertise.”

The fifth-largest pool in terms of Bitcoin (BTC) is Binance Pool. As of June 2023, it generated 28.96 EHashes per second, or around 7.71% of the net network hashrate for Bitcoin (BTC). According to information from BTC.com , their block commission rate of 7.01% is really the lowest among the top 10 mining pools.

Price Outlook for BNB

Since the firm came under criticism from American regulators, the Binance native coin BNB  has experienced a roller-coaster of a ride.

Before bouncing back to trade at $243.63 as of this writing, the asset hit an intraday low of $241.9. Since the SEC sued the company on June 6, it has dropped over 20%.

Since reaching its all-time high of $686 on May 10, 2021, BNB has dropped 63%. BNB has performed significantly better than many of its competitors despite the regulatory war on exchanges. Numerous altcoins, particularly ones connected to DeFi, have experienced a 90% price decline since their high.