Bitcoin holders have no choice but to trust in Chinese crypto miners
- Thread starter themickey
- Start date
BIT Mining’s Rapid Move into Crypto Space Shows Early Signs of Depth
May 28, 2021
https://www.thebambooworks.com/bit-minings-rapid-move-into-crypto-space-shows-early-signs-of-depth/
Key points:
To survive in its new form as crypto miner BIT Mining must grow as quickly as possible, control costs, and efficiently integrate its acquisitions
The company must also steer clear of Chinese oversight, become greener, and accept that its destiny will often be shaped by forces beyond its control
By Ben Livesey
The recently minted BIT Mining Ltd. (NYSE: BTCM) is doing what it says on the label – mining bitcoin and other cryptocurrencies. And the Shenzhen-based company’s board appears to be in the game to win. In the past few months alone, BIT Mining has bought a mining data center firm and a mining business, and is building plants to power its mining operations in places as far afield as Texas and Kazakhstan.
It’s not so much a business strategy as a high-stakes gamble, much like everything with cryptocurrencies these days. For investors thinking of pumping their money into BIT Mining and its peers, the bigger issue is whether they personally believe in the long-term prospects of crypto currencies.
BIT Mining’s American depositary shares (ADSs) closed at $8.71 on Thursday, down by two-thirds from a six-year high in mid-February shortly after it first disclosed its move into cryptocurrencies with a deal to buy a mining network. A steady stream of similar announcements has followed, including the latest one this week saying it would invest in a cryptocurrency mining data center in the Central Asian nation of Kazakhstan.
May 28, 2021
https://www.thebambooworks.com/bit-minings-rapid-move-into-crypto-space-shows-early-signs-of-depth/
Key points:
To survive in its new form as crypto miner BIT Mining must grow as quickly as possible, control costs, and efficiently integrate its acquisitions
The company must also steer clear of Chinese oversight, become greener, and accept that its destiny will often be shaped by forces beyond its control
By Ben Livesey
The recently minted BIT Mining Ltd. (NYSE: BTCM) is doing what it says on the label – mining bitcoin and other cryptocurrencies. And the Shenzhen-based company’s board appears to be in the game to win. In the past few months alone, BIT Mining has bought a mining data center firm and a mining business, and is building plants to power its mining operations in places as far afield as Texas and Kazakhstan.
It’s not so much a business strategy as a high-stakes gamble, much like everything with cryptocurrencies these days. For investors thinking of pumping their money into BIT Mining and its peers, the bigger issue is whether they personally believe in the long-term prospects of crypto currencies.
BIT Mining’s American depositary shares (ADSs) closed at $8.71 on Thursday, down by two-thirds from a six-year high in mid-February shortly after it first disclosed its move into cryptocurrencies with a deal to buy a mining network. A steady stream of similar announcements has followed, including the latest one this week saying it would invest in a cryptocurrency mining data center in the Central Asian nation of Kazakhstan.
Now with China cracking down so hard on crypto mining on their territory, the industry will either have to find a way to adapt or there will be serious problems, I imagine.
Not a problem as bitcoin difficulty algorithm adjusts every ~2 weeks
https://www.cnbc.com/2021/07/03/bit...-drops-after-hashrate-collapse-in-china-.html
https://www.blockchain.com/charts/hash-rate
Chinese bitcoin miners have been migrating out of China in weeks, some even going to the US
Now's a good time to mine bitcoin if you have the hardware. The difficulty will adjust down again as many of those Chinese bitcoin mining hardware are still offline
RIOT, MARA and others are happy about this
https://www.coinwarz.com/mining/bitcoin/difficulty-chart
Industry? The Chinese owned companies that operate physically in China were shutdown by the Chinese authorities
Let's say these companies move on and become toy manufacturers and never turn on their bitcoin mining hardware or their operations, what problems do you anticipate?
That was my point, it seems unrealistic to me that all these companies can just move.
And I agree with you, these Chinese bitcoin companies are incurring a lot of costs to move their operations out of China
There have been many posts here saying bitcoin is under the control of China due to the majority of the bitcoin mining computing power is concentrated there, heck look at the OP and the title of this thread
In a matter of weeks, poof, that's no longer true
The bitcoin network has been operating with no problems. The block generation was taking longer, ~19 minutes on average vs ~10 minutes, but after the difficulty adjustment, things are back to normal. It's part of the bitcoin design to be self-healing
As far as these Chinese bitcoin companies that have to move, I feel bad for them, but I still do not understand your concerns. Businesses have to do what they have to do as part of their operations and if they cannot or will not do it, they'll shut down the business for good
Am I missing something else regarding your concerns for the Chinese bitcoin mining companies' survival?