What is the Blockstream ASIC (BASIC) Note?

ASIC miners help to secure the Bitcoin network by validating transactions. ASICS generating hash power is a necessary part of the Bitcoin ecosystem. Still, the most important aspect for the average person is that these noisy computer boxes can generate new Bitcoin. Each year, individuals and businesses try their hand at this digital gold rush and acquire as many of these digital picks and shovels as they can afford.

Miners can purchase miners directly from manufacturers or resellers on the secondary market. If there is a significant interest in ASICS during a bull market, a reseller could net a healthy profit.

Having seen a dramatic drop in the price of ASICS over the last cycle, Blockstream is betting on the trend reverting and launching a financial product to back it. The Blockstream BASIC Note is a security token that provides investors with exposure to Bitcoin mining through speculation on the demand of ASIC miners, which has its own primary and secondary market. The note is backed by a portfolio of ASIC miners acquired by Blockstream with the intention to sell them on secondary markets as the demand for these devices increases.

The BASIC Note is a simple and efficient way to invest in Bitcoin mining without dealing with the complexity of mining yourself or the risks involved with hosted mining operators.