Exploring HAG (Hashrate Asset Group) Mechanism: A Regulated BTC Interest-Bearing Assets
Bitcoin has seen incredible growth and popularity since its inception in 2009. However, investing in Bitcoin can be challenging, especially for individual investors who lack the technical expertise and capital required for direct Bitcoin investment or mining. In recent years, new investment vehicles such as Hashrate Asset Group (HAG) have emerged to provide an accessible, compliant, and lower-risk way for investors to gain exposure to Bitcoin mining. This article will illustrate and compare the difference between buying or mining Bitcoin directly and the HAG mechanism.
Making money through buying and selling spot Bitcoin is like gambling, so HAG wants to provide their investors with a higher chance to win by the most. Buying the dip and selling the pike is easy to say but hard to carry out. Direct investment in Bitcoin requires investors to hold the digital asset and monitor its price movements to determine the ideal time to sell. Bitcoin’s price can be volatile, and investors need to time their purchases carefully to ensure they are getting the best value for their investment. Besides, buying and holding Bitcoin means you need to lock the value of your investment without any return on interest. Though appreciation of Bitcoin price is promising, we lack the interesting-bearing instrument within the Bitcoin network just like LSD in Ethereum. Just like Warren Buffet mentioned in his book “The Little Book that Builds Wealth”, HAG aims to build a moat in regulated mining assets that gives HAG investors higher odds to win while accumulating wealth by investing in BTC assets.
HAG’s way is providing ordinary investors with a regulated investment instrument to access institutional-class Bitcoin mining business and to lower the cost of holding Bitcoin assets. Mining Bitcoin means that you will acquire the Bitcoin at the cost, not the market price, but it involves using specialized hardware to solve complex algorithmic equations and validate transactions on the Bitcoin network. Bitcoin miners are rewarded with newly minted Bitcoins for their efforts in adding blocks or verifying transactions.
In fact, setting up and maintaining profitable mining operations requires a significant investment of time, capital, and technical expertise. Additionally, Bitcoin mining is an extremely competitive space where only those with the right hardware setup, expertise in mining-equipment maintenance, and access to cheap electricity can succeed. Based on historical data, buying Bitcoin mining equipment is hard especially when the Bitcoin price surges. Therefore, when to buy the equipment, how many to buy the pieces of equipment, where to place the equipment, and how to maintain the equipment are all keys to having a successful Bitcoin mining business. In the worst scenario, you might face the counter-party risk of mining farms going out of business.
HAG management team acquires profound experiences from the three most relative industries, traditional finance, Bitcoin mining business, and security token offering. From Goldman Sachs and Softbank, their members follow the highest internal control and compliance standards before and adopt the same level in Web3. Ranging from software to hardware relative to Bitcoin mining, their members come from Antpool, Bitmain, and TSMC. What’s more, their members joined the Bitcoin mining industry back in 2014 and the early investor of Bitmain, a World-leading supplier of Bitcoin mining equipment. Last but not least, HAG has Magic Circle as its advisor for the security token offering. Magic Circle is a pioneer in the industry acting like IBD for security tokens. Overall, they have a strong team, great products, and brilliant innovation.
HAG mechanism offers investors a regulated and innovative way to invest in Bitcoin mining through hashrate ownership with an interest-bearing instrument. HAG Tokens are security tokens that are fully compliant with the U.S. Securities Act. Security token’s asset class is security, so traditional institutions such as family offices, hedge funds, trust funds, etc, are eligible to add HAG into their portfolio without changing the legal agreement. Security Token is a digital token based on ERC-1404 that has all the same features and benefits as an ERC-20 token with a few enhancements to allow issuers to enforce regulatory restrictions. That is, HAG as a security token acquires the potential on DeFi based on ERC-20. Each HAG Token represents 1 terahash per second of perpetual mining hashrate backed by a fixed perpetual hash rate of 140 terahash per second with standard power efficiency of 3,010 watts.
Compared with buying Bitcoin directly or setting up your own hardware with all the necessary prerequisites, HAG provides a sustainable and verifiable dividends ROI for investors through a broad range of pricing assumptions. In the past, you might need to take 5 to 6 months or more to get your mining equipment shipped and set up, HAG offers you a one-click and instant solution to acquire or resell your hashing power. In addition, HAG will reserve 30% of net yield from Bitcoin mining as hash power maintenance, so HAG holders will not face issues about hash power decay or frequent repurchase. With a reputation and network in the Bitcoin mining industry, the HAG management team acquires a better ability to sniff the movement in the industry and diminish counterparty risks.
Token holders based on how many HAG Tokens they hold receive monthly dividend payments in the form of Wrapped Bitcoin (WBTC) net of expenses. The nature of the underlying hash power, regular net yield distribution as dividends, and compliance with extensive regulations result in significantly lower risk for investors compared with the broader cryptocurrency space.
Here are some key advantages of the HAG mechanism:
1. Compliance: HAG Tokens are fully filed with the US SEC and issued in strict accordance with securities laws.
2.Interest-bearing instrument: In addition to the fundamental value highly correlative to Bitcoin price, HAG offers investor dividends in WBTC, an interest-bearing asset based on Bitcoin Network.
3.Security in asset class: Buying HAG is just like buying stocks. No limitation on the amount especially for institutions.
4.Higher Liquidity/Accessibility: HAG Token investment is accessible to a wider range of investors compared to traditional Bitcoin mining, which requires significant capital and technical expertise. In addition, compared with Bitcoin mining equipment itself, HAG has significantly more liquidity to purchase or resell.
5.Perpetual and constant computing power: A well-designed structure ensures the feasibility of creating long-term value for assets.
6.Lower risk: HAG Tokens provide lower risk compared to direct investment in Bitcoin mining, making it an attractive option for investors looking to diversify their portfolios.
7.No tiring operational works: HAG Token holders do not have to worry about the cost of electricity, hardware upgrades, or other expenses associated with Bitcoin mining.
8.Huge room for collaboration: All the ERC-20 projects and security token platforms could be potential partners for growth.
In conclusion, while direct investment in Bitcoin and setting up a mining operation can also provide significant returns, these methods require technical expertise and capital investment, making them out of reach for individuals and most institutional investors. However, HAG Tokens break the obstacles and offer investors an accessible, compliant, and lower-risk way to invest in the Bitcoin mining space. With its transparent and secure structure, perpetual computing power, and monthly dividend payouts, HAG Tokens represent a compelling investment opportunity for those looking for exposure to the cryptocurrency market and Bitcoin prosperity.
About Hashrate Asset Group
Hashrate Asset Group aspires to build the world’s first sustainable, compliant, and transparent Bitcoin standard arithmetic operating model. HAG Token allows investors to join the ecosystem and receive a real-time return on your investment. HAG mining farm is located in the United States, and the team is composed of industry-leading professionals from Bitmain, Goldman Sachs, and TSMC.
Company: Hashrate Asset Group
Contact Person: Alpaga YANG
Telephone: +65 80388730