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Bitcoin Mining Has Gone Industrial
Bitcoin is the most popular digital currency in the world and has been making economical headway for smaller coins since 2008. In 2017, the value of Bitcoin sky-rocketed at its highest-ever value recorded. Unfortunately, this surge did not last and the last few years have seen Bitcoin shedding 80% of its value. Many people believed that Bitcoin would never be able to reach those heights again but 2020 has removed those doubts. Just this month, Bitcoin surpassed it’s 2017 value and seems to be in a more stable position. Throughout all of the ups and downs, bitcoin mining has never once ceased, with miners working tirelessly to ensure that users get what the digital network and asset offers. These days, as the demand for Bitcoin increases, mining has taken a more industrial turn.
Public Companies
2020 saw Bitcoin being embraced by more high-profile investors, which are either firms and companies or individuals, that have invested millions in Bitcoin and other digital currencies. As Bitcoin has experienced an increase in interest and value this year, do has the act of mining for the digital asset. As can be expected, the increase of every bitcoin has increased, which means that the profits from mining Bitcoin are slowly rising back up to almost pre-halving levels. This increase in mining rewards has attracted many individuals and companies who are using mining as a means to generate extra income. It has become the ideal mean of primary income for individuals who have lost their jobs or cannot go back to work as a result of the novel Corona pandemic. Several large companies have also been exposed to Bitcoin mining activities for some time. These companies have established mining operations and have accumulated research and education in the cryptocurrency mining industry.
Increased Access to Capital
As new participants join the industry, such as https://www.immediatebitcoin.io/, access to capital is of utmost importance, especially for mining operations. Digital companies such as Blockfill and Nexo have extended their range to service Bitcoin mining companies and individual miners. This allows miners to expand on their current operations and have the funding to hold off on sales when bitcoin is selling at a lower price. In May, Blockfills announced that it would providing a range of financial solutions to mining companies that are looking to purchase new-generation Mining Equipment, ASIC, from North American providers. Since this announcement, Blockfills has dispensed around $50 million in financial aid to these miners. In addition to this, Miners have also been subject to Bitcoin’s volatility. Hedging options were not available in the past but since its introduction, Bitcoin miners can now hedge their bets which gives miners a specific product that can easily be leveraged.
Governments are Showing More Interest
When Bitcoin was first introduced to the world 12 years ago, it was the subject of many debates and widespread mistrust. When the price increased in 2017, the digital asset made global headlines. Since this time, Governments all over the world have shown a keener interest in Bitcoin, with some taking a regulated stance towards the industry and others opting to be more relaxed. Portugal and other countries have reduced taxes on cryptocurrency mining and trading as a means to ensure the growth of the industry. Other governments, such as Kazakhstan’s, have decided to invest in Bitcoin mining and have established mining operations in their respective regions. However, not all countries have received Bitcoin warmly, with mining being deemed illegal. While it might seem that there are only two approaches, Iran legalized bitcoin mining last year and recently announced that all virgin bitcoin is to be sold directly to Iran’s central bank.
