Bitcoin holders have no choice but to trust in Chinese crypto miners

Discussion in 'Crypto Assets' started by themickey, May 28, 2021.

  1. Pekelo

    Pekelo

    I don't see the problem? Bitcoin is international! The founder (Nakamoto) is Japanese, the CEO (Wright) is Australian, the miners are Chinese, and the intended user targets are Asians and Africans.

    Oh yeah, and the bagholders are mostly white Americans....
     
    #11     May 29, 2021
    Millionaire and themickey like this.
  2. Saxio

    Saxio

    You gotta love Iran...:rolleyes:
     
    #12     May 29, 2021
    johnarb likes this.
  3. Kevinguo

    Kevinguo

    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.
     
    #13     Jun 6, 2021
  4. mlawson71

    mlawson71

    #14     Jul 9, 2021
  5. johnarb

    johnarb

    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
     
    #15     Jul 11, 2021
  6. mlawson71

    mlawson71

    Do you think they can move the whole industry like that?
     
    #16     Jul 12, 2021
  7. johnarb

    johnarb

    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?
     
    #17     Jul 12, 2021
  8. johnarb

    johnarb

     
    #18     Jul 13, 2021
  9. mlawson71

    mlawson71

    That was my point, it seems unrealistic to me that all these companies can just move.
     
    #19     Jul 13, 2021
  10. johnarb

    johnarb

    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?
     
    #20     Jul 13, 2021