Until this year, much of the crypto world had been focused on profiting from the boom in crypto prices. Now, some big investors are looking for ways to make money from the crash.
A 60% drop in bitcoin prices this year, along with the increasing difficulty of mining the cryptocurrency, has hurt miners—especially those that borrowed money to buy hardware as bitcoin prices were peaking last November. For readers less familiar with the process, “mining” for bitcoin involves computers solving complex math problems in order to validate a “block” of transactions on a network. The miner who finishes the problems first is rewarded with new bitcoins. The whole process often involves a lot of computing power.