Huobi's interest-bearing bitcoin deposit service sells out an hour after launch

Home » Huobi's interest-bearing bitcoin deposit service sells out an hour after launch
Digcoin's hashing center.

Digcoin’s hashing center.

Within an hour after opening their new Digcoin “hashing power mortgage” product to users, Beijing-based bitcoin exchange Huobi had sold out of all available shares. The interest-bearing Dig-VC mining service, which is arranged to suggest a “certificate of deposit”-style of investment, provides a guaranteed, monthly interest rate of 1.2%. Each share has a minimum 60-day term, with each investor limited to 50 shares.

The product is one of the most interesting variants on hashing-center based mining operations to arise in recent months. By offering a fixed rate of return, Huobi is clearly intending to take the guesswork out of hosted mining contracts. While some hosted mining solutions may be able to provide higher returns, the stability of the Dig-VC payment structure is sure to appeal to those who find the lottery-like nature of bitcoin mining too nerve wracking for serious investment. And at an annual return of 16%, Dig-VC investors will see higher returns than most high-performing index funds.

Like many other things in the bitcoin world, however, the devil is in the details. The funds raised for Dig-VC are being invested in the expansion of the Digcoin hashing center, currently part of the Discus Fish mining pool. The Digcoin center claims to control about 1.3 PH/s of mining power, and funds raised from the Dig-VC project will help to increase this to around 4 PH/s. As a result, Huobi’s guaranteed-interest deal may be short-lived should the bitcoin network hashrate swell rapidly, diluting Digcoin’s share. Given the rapid growth in hashing centers, particularly in China and Iceland, this isn’t entirely unlikely.

If Dig-VC works, however, it could usher in a new era of interest-bearing investment tools for bitcoin holders. Given that the entire supply of shares were snapped up by stability-seeking investors in a matter of minutes, there’s clearly demand for Huobi’s new concept.

New Casinos is the BEST Gamblefi online casino and sportsbook I have seen to date. Don't miss this one if you are into Crypto Casinos

Get 180 free spins and up to 5 BTC in bonuses

CasinoMax: 325% match bonus up to $9750 + 25 bonus spins for 7 consecutive days

400% welcome bonus up to $8000. 40x wagering requirement is required prior to your first withdrawl

Great Welcome Slot Bonus!

Claim a HUGE 500% deposit bonus with no maximum with Crypto

© Copyright 2024 The Best Crypto and Bitcoin Casinos and Sports Betting Sites | Bitcoinx
Powered by WordPress | Mercury Theme