Strateg: Bitcoin är mer sannolikt att vara framgångsrikt ‚på lång sikt‘ än Ethereum

Lyn Alden liknar Ethereum med Concorde-flygplanet: funktionellt men inte „ett ekonomiskt hållbart projekt.“

Ethereum-nätverket som en „oavslutad produkt“ jämfört med Bitcoin

En anledning till att strateg och investeringsguru Lyn Alden inte investerar i Ether är att hon anser Ethereum-nätverket som en „oavslutad produkt“ jämfört med Bitcoin.

Aldens ekonomiska analys av Ethereum som släpptes idag jämför det smarta kontraktsnätverket med Concorde-jet: funktionellt eftersom det har „massor av smarta utvecklare som arbetar med det“ men sannolikt inte kommer att bli ett ekonomiskt hållbart projekt på lång sikt. Hon sprang ner några av Ethereums huvudfunktioner som bevis på hennes påstående och kallade användningsfallet för många decentraliserade appar „cirkulärt och spekulativt.“

Dessutom sa hon att nätverkets noder är mer benägna att riskera en centraliserad attack „om det skulle bli någon regeringsåtgärd mot tredjepartsnodtjänster.“ Alden sa att tillsynsmyndigheter inte „nödvändigtvis skulle sänka Ethereum“ utan effektivt skulle kunna hota användningsfallet genom att göra apparna svårare att köra.

Alden sammanfattade sina tankar på Twitter:

„Ethereum kunde verkligen göra mycket bra under det närmaste året när det gäller pris, men så länge det omvandlar sitt baslager är det fortfarande en spekulation i alfa-utveckling snarare än en färdig / stabil produkt.“

Å andra sidan sa investeringsguruen att Bitcoin

Å andra sidan sa investeringsguruen att Bitcoin (BTC), med sin fasta tillgång på 21 miljoner mynt, inte hade Ethereums „godtyckliga penningpolitik“ förutom att säga att det fanns en „kulturell skillnad“ mellan de två nätverk.

„Ethereum lockar mer av en spelarkultur och mer experiment“, säger Alden och påpekar att några av de projekt som byggts på nätverket hade resulterat i misslyckande. ”Kanske om ytterligare fem år när Ethereum 2.0 är på plats och fungerar ett tag, med konsekvent penningpolitik under hela tiden, kan det till stor del betraktas som ett färdigt projekt som Bitcoin. Fram till dess är det experimentellt. ”

Förra året sa Alden att hon blev „ganska hausse“ på Bitcoin med tanke på dess brist, halvering och potential för kryptotillgången att fungera som bakgrund till inflationen. Hon tillade i sin analys av Ethereum att hon föredrog Bitcoin för sin „risk / belöningsmöjlighet“ och hävdade att för alla myntets prisvolatilitet fanns en „uppåtriktad potential“.

„[Bitcoin] rör sig inte snabbt och bryter saker som många altcoins gör, men det rör sig långsamt och har en tendens att få saker rätt“, sa hon. „Ju fler idéer och innovationer som dyker upp i den bredare digitala tillgångsindustrin, desto mer måste Bitcoin-utvecklare arbeta med för sitt protokoll och ekosystem.“


Der Bitcoin-Preis nähert sich 30.000 US-Dollar mit neuen Allzeithochs

Eine schnelle Rückkehr zur Form für Bitcoin führt zu einem täglichen Gewinn von 8% und gibt keinen Hinweis auf eine tiefere Umkehrung unter 30.000 USD.

Bitcoin ( BTC ) kehrte am 30. Dezember zu Rekorden zurück, nachdem ein neuer Aufschwung das Allzeithoch von 28.400 USD überschritten hatte.

BTC Preis Nägel frisch Allzeithoch

Daten von Cointelegraph Markets und TradingView zeigten, dass BTC / USD während des Handels am Mittwoch seine bestehende historische Spitze angepackt hat .

In einem starken Wiederaufleben über Nacht bestätigte Bitcoin, dass es keine Zeit für Bären hatte, nachdem es in den letzten 24 Stunden kurzzeitig auf 25.830 USD gesunken war.

Die täglichen Gewinne lagen zum Zeitpunkt der Drucklegung bei 7,5%, als 28.560 USD Realität wurden.

Der Schritt bringt Bitcoin immer näher daran, 30.000 US-Dollar als neues psychologisches Niveau vor Jahresende zu besiegeln, was noch vor einer Woche so gut wie unmöglich schien.

Wie Cointelegraph berichtete , glauben Analysten jedoch immer noch, dass eine Umkehrung die größte Kryptowährung auf die bestehende Unterstützung von 19.500 USD reduzieren könnte.

Am Dienstag, den Cointelegraph Markets Analyst Michaël van de Poppe dennoch hervorgehoben $ 27,500 als kritischen Bereich zu brechen , um den Weg für neue Allzeithochs zu ebnen.

Der Ätherpreis führt zu Altcoin-Gewinnen

Die Auswirkungen auf die Altcoins mit großen Marktkapitalisierungen waren deutlich zu spüren. Ether ( ETH ) näherte sich 740 USD, nachdem er an diesem Tag um 5,5% gestiegen war.

Polkadot (DOT) erhöhte die vorhandene Stärke , um einen wöchentlichen Leistungsansatz von 50% zu erzielen.

Nach wie vor war die Ausnahme XRP , das tägliche Verluste von 10% aufrechterhielt, da fortgesetzte Delistings durch große Börsen die Stimmung weiter belasteten. Trotzdem gelang es der unruhigen Münze, 0,20 Dollar zurückzugewinnen.


Grayscale innehar 19 miljarder dollar i Bitcoin, Ethereum och annan krypto-AUM

Grayscale Investments förvaltade tillgångar (AUM) är nu värd $ 19 miljarder i krypto enligt grundaren Barry Silbert.

VD för Digital Currency Group gick på Twitter för att meddela att den 29 december har Grayscales AUM tredubblats från och med den 1 november, då den hade 7,6 miljarder dollar i förvaltning. Företaget har också sett en betydande tillväxt på bara två veckor. Den 15 december avslöjade Silbert att Grayscales AUM var 13,0 miljarder dollar vid den tiden.

Ki Young Ju från CryptoQuant fann att 16% av Bitcoin Pro marknadsvärde nu ägs av institutionella investerare och hänvisade till Grayscales AUM i en tweet idag som sa:

Tidigare visade Grayscales investeringsrapport för tredje kvartalet att när det gäller dess enheter, såsom BTC-förtroende, kom 80% av investeringarna från institutionella investerare, som dominerades av säkring. Företagets Bitcoin Trust AUM var Grayscales snabbast växande investeringsprodukt den 14 oktober. Den genomsnittliga veckovisa investeringen i Grayscale Bitcoin Trust var 39,5 miljoner dollar och förtroendet upplevde 719,3 miljoner dollar i 3Q20 inflöden, eller 1 500% ökning.

Efterfrågan på andra Grayscale-produkter, till exempel dess Bitcoin Cash Trust, ökade också betydligt under tredje kvartalet, med inflöden som ökade med mer än 1400% kvartal över kvartal.

Gråskala har dock fått kritik från influenser. Euro Pacific Capital VD Peter Schiff anklagade till och med kapitalförvaltaren för att „pumpa“ bitcoin till investerare genom att betala för reklam på CNBC. Han hävdade att gråskala brände bitcoinbubblan:

Schiff hävdade också att så länge Bitcoins priser stiger skulle Grayscale vara „den största Bitcoin-köparen.“

Det har dock funnits flera andra företag som har investerat i den populära krypton. MicroStrategy, ett börsnoterat företag, avslöjade över $ 1 miljarder i totala bitcoinköp gjorda 2020.

När det gäller offentliga företag som innehar bitcoin antydde faktiskt data från Bitcointreausuries att över 800 000 Bitcoin eller 4% av det totala cirkulerande utbudet innehas av offentliga företag. Dessutom rankas Galaxy Digital som har 16 651 BTC och Square (4 709 BTC) andra respektive tredje i listan över offentliga företag som innehar bitcoin.


Despite negative reports – institutional investors continued to show interest

Institutional investors are continuing to buy Bitcoin, although negative news has recently been spoiling investor sentiment.

On the night of Christmas Eve, Bitcoin Pro was rejected at the US $ 24,000 mark, but the hunger of institutional investors is not lessening.

According to data from the analysis platform CryptoQuant, the crypto exchange Coinbase Pro, which specializes in professional investors, recorded two payouts this week, each of over 12,000 BTC (278 million US dollars).

Coinbase is paying out $ 500 million to BTC

As Cointelegraph reports , withdrawals of this magnitude often indicate that a major investor has purchased a significant amount of Bitcoin that is being moved into a single wallet.

„Another great Coinbase payout within a few hours“ as Ki Young Ju, CEO of Crypto Quant, accordingly on Twitter finds . From this he concludes:

„The institutional investors are buying Bitcoin.“

In November, all Bitcoin miners together “mined” around 28,000 BTC in block rewards, which is only slightly more than the sum of the two most recent Coinbase withdrawals. This makes it clear that there is currently a shortage of the market-leading crypto currency, which in turn drives its price upwards.

Negative reports ruin the festival

The continuing interest of institutional investors is in stark contrast to the latest developments in the market, which are dampening investors‘ Christmas mood somewhat. Above all, the SEC lawsuit against crypto payment service provider and XRP publisher Ripple is causing tremendous turbulence, but the threat of massive Bitcoin sales in the case of the Mt. Gox crypto exchange are also causing concern.

The fear that trading in the Ripple crypto currency XRP could be banned entirely in the future was probably the breeding ground for the volatility of Bitcoin in the past 24 hours.

At the same time, the market is keeping an eye on the sponsors of Mt. Gox, who own large amounts of BTC through repayments, which they may now want to sell at the current record rate . That alone could add $ 3.2 billion to selling pressure.

Despite this negative news, institutional investors still seem confident about the future of Bitcoin, which can be seen not least from the two large Coinbase payouts.


Les altcoins vont connaître une „rotation capitale“

Les altcoins vont connaître une „rotation capitale“ alors que le rallye Bitcoin s’intensifie

  • Les monnaies alternatives sont actuellement très en retard par rapport à Bitcoin, qui est en train de montrer aux marchés pourquoi il est roi
  • Le rallye de la cryptocarte de référence a fourni des vents arrière pour d’autres altcoins, mais ils n’ont pas encore atteint la parité avec la dynamique actuellement observée par la CTB
  • Un opérateur en a parlé dans un récent tweet, expliquant qu’il surveille maintenant la rotation des capitaux entre les pièces de monnaie et les altcoins
  • Il note qu’il y a déjà des signes de cette évolution, notamment une forte baisse constatée par Bitcoin la nuit dernière qui a fait place à un rassemblement Ethereum

Bitcoin a pris la tête de l’ensemble du marché aujourd’hui, le Bitcoin Profit prix de la cryptocarte a dépassé les 20 000 dollars hier et a connu des gains paraboliques aujourd’hui alors que les altcoins stagnent pour la plupart.

Les tendances à moyen terme dépendront sans aucun doute en grande partie de sa capacité à maintenir sa force actuelle, car tout „blow off top“ pourrait s’avérer désastreux pour son action sur les prix.

Un trader pense que la tendance à court terme de la cryptocouronne va régir celle des altcoins, notant qu’une baisse des prix observée par la BTC pourrait en fait être avantageuse pour les altcoins.

Le rallye des bitcoins aspire l’oxygène de la pièce

Au moment où nous écrivons ces lignes, Bitcoin est en hausse de plus de 8 % à son prix actuel de 23 150 dollars. Ceci marque une hausse massive par rapport à son récent plus bas niveau de 17 600 dollars, atteint il y a quelques jours.

La pression à la vente observée à 20 000 $ était importante, mais la rupture nette ci-dessus a permis à BTC d’entrer dans ce qui semble être un mode de découverte des prix.

Les altcoins ont stagné pour la plupart, avec des gains bien inférieurs à ceux observés par la crypto de référence.
Les Altcoins pourraient bientôt connaître un afflux de capitaux

Un trader a expliqué dans un récent tweet que les altcoins sont susceptibles de connaître un afflux massif de capitaux dès que les investisseurs quitteront Bitcoin.

Il a souligné l’augmentation de 8% d’Ethereum, observée juste après que Bitcoin ait atteint un sommet de 23 700 dollars :

„ETH vient de pomper 8 % alors que BTC se débarrassait de Bitcoin. C’est une bonne chose pour les altistes. Rotation du capital“.

Si cette tendance persiste, les baisses de prix des bitcoins pourraient en fait devenir des catalyseurs haussiers pour les altcoins à court terme.


Bitcoin bulls are in full control of BTC

These 4 factors show: Bitcoin bulls are in full control of BTC

Bitcoin and the entire crypto market have been in an intense consolidation phase in recent days and weeks – although the cryptocurrency has seen both breakouts and breakdowns recently.

  • Just last night, BTC showed some promising signs of an uptrend that ultimately led to it facing another rejection in the mid-$19,000 region.
  • The selling pressure here was not enough to break the underlying strength as BTC has since shown bullish signs as it continues to move higher.
  • One trader now gives 4 specific reasons why he is not currently bearish on BTC – and concludes that a break above $20,000 is imminent.

Bitcoin is currently on an upward trajectory following weakness yesterday that saw the Bitcoin Code cryptocurrency’s price fall from a high of $19,600 to a low of $19,050.

This spike came after several days of consolidation that took BTC into bullish territory – but selling pressure within the mid to upper $19,000 region led to another sharp rejection.

Since then, Bitcoin has climbed back towards this key resistance area, and one analyst points to a few key factors that suggest a rise is imminent.

Bitcoin shows signs of strength as price rallies

Currently, Bitcoin is trading at $19,600, which is the same as the daily high reached last night. Where the cryptocurrency goes in the medium term is likely to depend largely on its reaction to selling pressure between $19,500 and $19,800.

Once this region is broken to the upside, all eyes will be on the breakout above $20,000 – which is widely expected to trigger the next massive rally.

4 factors show: This is why the bulls are in control of BTC

One trader writes in a tweet that 4 primary factors are crucial to a bear thesis – and none of them are currently seen in Bitcoin.

„BTC I would be bearish if: – This had been a sweep into clean untested supply (range has been tested 4+ times) – Funding had been positive (it’s going negative across the board) – Premium had spiked (spot is going brrrrr). So yes, I expect a test of 20K soon.“


Sipulimarket Dark Web Site fechado e Bitcoin apreendido

  • O Sipulimarket foi retirado do ar e seu Bitcoin foi apreendido.
  • O Sipulimarket substituiu o antigo gigante da teia escura Silkkitie, que foi fechado em 2019
  • A alfândega finlandesa apreendeu uma quantidade desconhecida de bitcoin

O Sipulimarket foi fechado em uma operação conjunta entre a alfândega finlandesa, a polícia polonesa e a Europol, com a apreensão de bitcoin como resultado. O site, que foi lançado não muito depois que o site escuro da Silkkitie foi derrubado no ano passado, tornou-se um favorito entre os usuários escandinavos da web escura, com seu fechamento marcando outro golpe contra os operadores escuros da web.

O Sipulimarket se tornou o primeiro site negro da Finlândia.

O Sipulimarket, criado em 2019, havia se tornado o maior mercado finlandês de escuridão após o fechamento da Silkkitie, considerada a Rota da Seda finlandesa, em maio do ano passado. O Sipulimarket preencheu a lacuna deixada pela Silkkitie, atendendo o mercado escandinavo, e era conhecido por ser um dos maiores sites escuros da Europa, embora por razões óbvias a renda real seja desconhecida.

Como muitos sites escuros, o Sipulimarket se concentrava na venda de narcóticos, mas itens digitais e informações sobre cartões de crédito também estavam à venda. O site usava um sistema de caução, onde o dinheiro pago pelos itens residiria até que a transação fosse concluída.

Bitcoin Haul Não Revelado

Não foi revelada a quantidade de bitcoin que foi recuperada das contas de depósito e das carteiras do Sipulimarket, mas dado que elas eram um dos maiores sites escandinavos da Escandinávia, pode-se supor que o lanço era grande em tamanho. A alfândega finlandesa realizou a apreensão do Bitcoin, sendo provável que os lucros sejam leiloados no próximo ano.

Uma declaração divulgada pela Europol revelou a extensão da colaboração necessária para trazer o Sipulimarket à terra, com a alfândega finlandesa (Tulli) trabalhando com a sede da polícia provincial polonesa, o Centro Europeu de Crimes Cibernéticos da Europol (EC3), a Eurojust (Agência da União Européia para Cooperação em Justiça Criminal) e a empresa Bitdefender de segurança cibernética.


Faktoren, die den Erfolg des Studio City-Projekts bestimmen sollen

Crown Resorts Ltd. war früher ein florierendes Unternehmen, hatte aber in den letzten Monaten leider bis zu einem gewissen Grad seine konsolidierten Positionen auf dem Markt verloren.

Trotzdem blieben die Führungskräfte der Crown Resorts entschlossen, ihre verlorenen Positionen zurückzubringen und sich auf den Ausbau ihres Geschäfts im asiatischen Glücksspiel-Mekka Macau zu konzentrieren.

Aber wie profitabel wird dieses Unternehmen für Melco und Crown sein und ob Investoren auf ihre Kosten kommen würden?

Dies ist eine heikle Frage, die aufgrund einer Reihe günstiger und ungünstiger Faktoren, die sich auf das Macau-Projekt auswirken, nicht explizit beantwortet werden kann.

Es ist bekannt, dass der Casino-Sektor in Macau 2014 insgesamt nicht allzu profitabel war, was die Investoren misstrauisch gegenüber dem Erfolg des Videoslots Projekts machte .

Tatsächlich sind ihre Zweifel und Argumente nicht unbegründet, da das Vorjahr durch einen Rückgang von 2,6% gekennzeichnet war, was sie dazu veranlasste, die Rentabilität des zukünftigen Casino-Eigentums in Frage zu stellen.

Darüber hinaus brach der Aktienkurs der sechs in Hongkong gelisteten Casino-Betreiber um 40% ein

Herr James Packer und seine Geschäftsunternehmen haben in letzter Zeit Schlagzeilen gemacht, und es wird angenommen, dass die Partnerschaft mit Lawrence Ho die Gewinne von Melco Crown steigert und der harten Konkurrenz widersteht, indem sie den Besuchern exklusive Spiel- und Unterhaltungsoptionen bietet.

Nach den Informationen von Lawrence Ho selbst soll Studio City innerhalb weniger Monate fertiggestellt sein, und das Merkmal, das die Immobilie attraktiv machen soll, wird ihr „familienorientierter“ Stil sein.

Um dies zu erreichen, werden die Beamten die Unterhaltungsoptionen von Warner Bros und DC Entertainment sicherstellen.

Angesichts der Tatsache, dass Herr Packer Co-Vorsitzender von Melco Crown und eine Schlüsselfigur auf dem australischen Glücksspielmarkt ist, ist es keine Überraschung, dass Studio City ein „familienfreundliches“ Resort sein wird.

James Packer hat bereits herausgefunden, dass ein Resort mit „Familienmerkmalen“ häufiger besucht wird und daher rentabel ist . Und das ist noch nicht alles.

Es ist allgemein bekannt, dass Veranstaltungsorte in Macau auf High-Roller-Spieler angewiesen sind , um zufriedenstellende Einnahmen zu erzielen. Da das Ziel der Manager von Studio City darin besteht, nicht auf High-Roller-Spieler zu zählen, um stabile Einnahmen zu erzielen, haben sie sich auf die Idee festgelegt, ein „familienfreundliches“ Resort zu errichten.

Mit ein Ass im Ärmel ist, Crown Resorts Ltd. erwartet seinen neuen Ort eine blühende ein und machen Investoren und Spieler dafür, ein Teil von Studio City froh zu machen.


Trend reversal? Investors use price setbacks for altcoin investments

After a temporary price weakness in the middle of the week, the key currency Bitcoin and with it the majority of Altcoins can recover significantly in the last few days. Ripple (XRP) comes under increasing pressure after the termination of the Spark Token Airdrop on Saturday December 12th and collapses by 18 percent compared to the week.

Last week, it looked like further consolidation in the crypto market

But the crypto key currency Bitcoin Revolution scam has been bullish again in the last few days and can rise again above 19,000 US dollars. At its peak, Bitcoin fell by around 10 percent and also had the majority of altcoins corrected. However, the bulls returned to the market in good time and once again fought off all corrective efforts by the bear camp. The largest cryptocurrency is thus only trading slightly lower than the previous week at 19,180 US dollars. The top 10 altcoins are only marginally weaker, but lose an average of three percentage points. Ripple (XRP) in particular loses in the course of the airdrop carried outyesterday, Saturday, December 12th, by 15 percentage points. A renewed attack by the BTC price on the all-time high should once again have a positive effect on the price development on the overall market in the coming trading days.

Best price development among the top 10 altcoins: Stellar (XLM)

In the previous week, the XLM price corrected significantly and fell to the supertrend at 0.140 US dollars. Based on this support, the price of Stellar rose again in the last few days of trading and was able to cross its red downtrend line at the daily closing price on Sunday, December 13th. This enabled the XLM rate to regain the EMA20 (red) at $ 0.158.

Bullish variant (Stellar)

If the price of Stellar stabilizes above $ 0.162 at the end of the day, a rise to the resistance at $ 0.189 is initially likely. An important horizontal resist runs here, which has had several price-limiting effects. If the XLM price dynamically overcomes this resistance, a march through to the 261 Fibonacci extension at $ 0.220 is conceivable. If the bulls can break through this resist and also break through the high for the year at US $ 0.229 sustainably, the price target will be activated at US $ 0.238. The superordinate 23rd Fibonacci retracement runs here. If this resist is subsequently also overcome, the 361 Fibonacci extension at US $ 0.283 comes into focus. If this resistance level can also be broken sustainably, a march towards 0 is necessary, $ 321 and $ 0.345 likely. Looking ahead, a sustained rally in Stellar prices should lead to the overarching 38 Fibonacci retracement at $ 0.370. In the medium term, the XLM rate could rise to $ 0.407 and a maximum of $ 0.476 (50s Fibonacci retracement).

Bearishe Variante (Stellar)

If, on the other hand, there is a false breakout and the XLM price falls back below the downtrend line and the EMA20 (red) at $ 0.162, the bears will try their luck again. If the development low at 0.144 US dollars is subsequently undercut, the cross-support from EMA50 (orange) and Supertrend at 0.136 US dollars comes into focus. If this support is also undercut by the daily closing price, a retest of the outbreak level at 0.119 US dollars should be planned. The EMA100 (yellow) is currently also running here. If the green support area is subsequently left downwards, this is to be assessed as a sell signal. A correction back to the EMA200 (blue) at $ 0.098 is likely. However, as long as Stellar is trading above $ 0.136,

Indicators: RSI is neutral, MACD with an active sell signal

The RSI can break down from its overbought condition and is trading in the neutral zone again. A renewed rise above 55 would activate a new buy signal. The MACD indicator, on the other hand, tends further south and has a sell signal. On a weekly basis, both indicators have still activated a buy signal, which favors the long scenario of a further increase in the XLM price.


The rise of large mining companies is inevitable

2020 marked a new era for institutional mining, giving rise to new possibilities and problems.

There are very few investments capable of combining infrastructure and venture capital. Mining, if taken to the highest level, allows arbitrage in the energy markets and simultaneously accumulate Bitcoin (BTC). This is why we are witnessing a boom in the Bitcoin mining industry and start building mega-structures. So let’s analyze some of the main elements to be taken into account for a profitable mining company.

Securing new generation hardware

At its peak performance in 2018, Bitmain was producing over 95,000 machines per week. However, since then, its production levels have dropped, also due to the ongoing legal dispute. On the other hand, MicroBT plans to deliver hundreds of thousands of devices during the year.

Western countries receive only a small proportion of these new machines, and with 17 listed mining companies and large ASIC speculators announcing purchases every week, it is easy to conclude that that limited supply of new equipment is quickly running out. Building direct relationships with manufacturers has become critical to ensuring a wide availability of new machines. But how do you ensure a stable supply of hardware? With a large chequebook, of course.

Reduce capital expenditure

Economies of scale are at odds with decentralisation. Yet, like most other economic sectors, mining rewards large dimensions. More structured mining companies have access to discounts on ASIC retail prices. With an average depreciation period of around 300 days for new generation equipment, the discount can be reduced by more than one month. In addition, large miners pay less down payments, in some cases around 20%, compared to over 50% for retail sales. This allows miners to buy more equipment and build larger structures faster.

From an infrastructure point of view, in most cases the construction of a 30 megawatt mining farm is much cheaper per MW than a 3 MW plant.

Maximising operating profits

If you want low-cost energy, you will need to invest considerable capital for expenses such as the purchase of land, generators and equipment, the construction of large infrastructure, the financing of performance bonds, etc.. Although small miners take advantage of low-cost energy sources, the most profitable companies are the largest: they have the capital needed to secure the best positions and, as we know, the cost of electricity is one of the determining factors for success.

Beyond the supply of cheap electricity, large miners can negotiate lower fees for pools, firmware development and ASIC management software. They can also reduce the amount of manpower required per MW, increase the efficiency of their management and improve the effectiveness of their energy use.

Access to higher financing mechanisms

Mining is a capital-intensive activity as it requires constant equipment upgrades and new purchases. The construction of a 10 MW mining farm with new generation equipment can cost almost $10 million, depending on the purchase price.

Access to various forms of financing is therefore essential to ensure that the facilities remain large and enjoy the benefits discussed above.

From 2018 to 2019, most of these mining operations were financed through a mix of debt and equity. In 2020 we saw a boom in ASIC funding. Large mining companies are now able to raise funds from lenders using their ASIC machines as collateral. The number of these lenders is still limited, so they give priority to the best low-risk operators.

Manufacturers have also changed

Most of the first questions that are asked when the mining opportunity arises relate to the equipment: „Where does the equipment come from? Who is the manufacturer? Is there a guarantee? What is the price? Why does the price change every day? When are the machines shipped?

Manufacturers like Bitmain have been pioneers in the crypto investor review since this industry was a real Wild West. In 2016 the race began to bring as many machines as possible onto the market. Things like company policies, shipping and pricing details, warranties, repair centres and transparency were almost completely ignored.

When big business entered the industry, everything changed, from the mentality of manufacturers downwards. Now mining equipment manufacturers make weekly phone calls to key customers, discussing production visibility and offering greater transparency in operations. In addition, most manufacturers now offer machine warranties, have opened repair centres and try to be more transparent about shipments and prices, although overall the industry still has a long way to go.

This trend towards professionalisation of the sector is likely to continue in the West.

Mining pools offer greater transparency

Another question that a large company could ask itself is: „Where will the money come from?“.

Usually, the answer is: from a mining pool, because they buy hash installments. So it is legitimate to ask who this counterparty is and what risks are associated with managing them.

Pools have historically been a problematic element in the mining value chain. Large companies have helped to increase the price transparency of mining pools, reduced the number of pools they steal from miners, and encouraged them to develop a new set of features. The mining pool industry is evolving rapidly and if companies do not keep pace, they will lag behind. All these trends will benefit large companies who want to deal with serious and compliant counterparts.

Consolidating the industry

A wave of consolidation is probably on the horizon in the mining sector: there are hundreds of large companies and teams fighting for space, ready to be acquired.

The main consolidation will take place at farm level. These mergers and acquisitions will most likely take place at the project level rather than at the company level, similar to what happens in the real estate industry.

Financial services companies will also be natural buyers, as they will seek to build an ecosystem that embraces both the mining and financial value chain.

Financing the hash rate

With each traditional commodity, companies have the ability to leverage financial instruments to hedge their cash flows through futures and options, sell part of their production in purchase or forward contracts, and more.

To date, there are very few financial instruments based on the hash rate. The entry of large companies will change this situation, as they are creating demand for this type of product. The need for miners must be met by other players, such as traders, to create liquid and solid markets.

Five-year prospects for mining

If you had told the miners in 2015 where we are today, they probably wouldn’t have believed you: millions of ASICs securing the grid, gigawatts of energy used and companies like Fidelity opening their own mining company.

It’s hard to predict how the industry will evolve over the next five years, but I believe that large institutions will continue to drive innovation in the industry, creating a safer network for Bitcoin. But this will also lead to new challenges such as protocol censorship, more Know Your Customer/Anti-Money Laundering procedures, less decentralisation and so on. Mining companies will have to work closely with these new players to create a better future for BTC.