Why Bitcoin Mining is a Safe Way to Earn Passive Income and Achieve Financial independence
Why Bitcoin Mining is a Safe Way to Earn Passive Income and Achieve Financial independence
The global financial market is in a period of remarkable uncertainty. The prices of household goods are skyrocketing, making it extremely difficult for people to achieve financial independence while working 9 to 5 jobs. People are working longer hours than ever, leaving less time to spend with their loved ones.
Critically, safe-haven assets such as gold, real estate, defensive stocks, and ETFs are underperforming in an unprecedented fashion. This has pushed smart and innovative investors to review their investment choices. Does investing in the decade-old Bitcoin mining industry hold the answer to generating safe returns in these distressing times?
“Safe-haven” assets under pressure amid rising inflation
Safe-haven assets typically perform well during uncertain times. For instance, when prices rise (termed high inflation,) these assets offer a safe refuge from losses. However, a second look at these assets’ performance shows they are not offering the returns people expect in a high-inflation economy.
Take gold, for instance. Many investors, including Robert Kiyosaki, consider gold the best inflation hedge. However, gold posted negative returns in 2021. Also, despite the war in Ukraine and runaway inflation globally, gold has managed only a 2.5% return in 2022.
The S&P 500 index, which represents overall market performance, is faring similarly. The index’s average return of 10% means little because inflation is currently near 8%, according to German statistical agency Destatis.
The real estate market is also suffering. Consider the benchmark Vanguard Real Estate ETF (VNQ), which is a proxy for real estate sector performance in the US. This ETF has posted an average return of 8.6% annually. However, VNQ suffered in an inflationary environment too.
VNQ returns (Source: Yahoo)
These market conditions are also impacting the performance of Bitcoin (BTC), an asset highly valued by Kiyosaki. However, the Bitcoin mining industry offers different dynamics and a massive opportunity to investors who want their money to work for them.
Bitcoin mining remains secure and lucrative
The price of Bitcoin fluctuates violently. However, miners can obtain BTC at significant discounts to market prices. Even though Bitcoin currently trades at around $22,000 (about 70% off its all-time high), the Antminer S19 mining machine can produce bitcoins at approximately $10,300 per coin.
(Source: Braiins)
This means Bitcoin mining investors secure a profit from the beginning and build a moat against even the largest price downturns. In previous years, only sophisticated investors could tap into Bitcoin mining rewards because of the huge capital involved. However, investors can now unlock this reliable passive income stream.
Build sustainable and secure passive income through Bitcoin mining
Green Mining DAO (GMD) is an innovative solution to tap into the profitable Bitcoin mining industry. Green Mining Token (GMT) holders receive an estimated 20% APY in BTC generated from a large-scale mining operation run by highly qualified personnel. GMT holders are not locked in and can adjust allocation by simply buying and selling tokens. Learn how GMD provides safe exposure to steady passive income.
