MicroStrategy’s founder, Michael Saylor, is not slowing down on his optimistic outlook for Bitcoin (BTC), the world’s leading cryptocurrency. Turning to the crypto mining sector, Saylor highlighted a crucial strategy for Bitcoin miners.
Saylor’s Bitcoin mining idea
Saylor thinks Bitcoin miners can maximize their profits by holding more Bitcoin in their treasury. “Bitcoin miners should adopt the Bitcoin Standard,” Saylor wrote in a post on X. Saylor’s advice has been welcomed by many Bitcoin enthusiasts as they think miners cannot succeed with mining alone.
Bitcoin Miners should adopt the #Bitcoin Standard.
— Michael Saylor⚡️ (@saylor) August 13, 2024
The Bitcoin Standard concept refers to adopting Bitcoin as a global monetary alternative, similar to how gold was utilized in the past. Under this concept, Bitcoin would serve as an international reserve currency, disrupting the role of central banks.
Notably, Bitcoin miners are critical to the functioning of the BTC network. These individuals help secure and validate transactions on the network by solving complex mathematical problems. In return, they receive incentives through Bitcoin and fees for their work. By adopting the Bitcoin Standard, these miners can better secure the network and ensure the long-term sustainability of the coin.
Additionally, miners can increase their income by exploring new business models and services, such as cloud mining, mining pools and financial products based on Bitcoin. An additional source of income will help boost miners’ incentives, which were reduced by half following the April halving event.
Furthermore, miners adopting the Bitcoin Standard can get extra freedom due to zero government interference.
Increase in Bitcoin mining difficulty
Bitcoin mining difficulty, a measure of how hard it is to mine a Bitcoin block, reached a historic peak on Aug. 1. Specifically, the difficulty of Bitcoin increased by 10.5%, indicating increased competition among miners following the expansion of the network.
An increase in this indicator could lead to higher operational costs for miners, which might influence the future movement of Bitcoin’s price. However, Mike Novogratz, Galaxy Digital’s CEO, believes integrating AI into mining can reshape the Bitcoin mining ecosystem.