The current market predicament, doesn’t seem to phase big mining companies too much.
With the huge price increase in crypto last year, mining became incredibly popular. If you told people in 2016 about how much the markets would grow, you would be laughed at. The same way if you told someone at the peak of 2017 how much the markets would shrink, you would again be laughed at.
If we look at the rate at which mining innovations are popping up, it’s entirely normal for this to occur. ASIC mining chips managed to revolutionize mining and pretty much made casual mining impossible. Big mining companies are always willing to invest in new technology and it’s very likely that 10 years from now ASIC mining chips will be outdated technology themselves.
Recently NVIDIA announced a huge drop in GPU sales and has started to focus on making chips. Even though the chips needed for crypto have a very different and unique design, they give the industry a unique advantage.
Big mining companies should try to prepare for eventual future opportunities
Many investors like to state that “History repeats itself,”
So eventually the cycle will present the mining sphere another huge opportunity. The question is when will it happen and who will make the necessary innovations to profit?
Bitmain is without a doubt, one of the biggest names in crypto mining. With the crypto mining market reaching a phase of maturity, it’s normal for it to attract public attention. This would mean that Bitmain could face some heavy opposition down the road.
Bitewei is a company founded by Yang Zuoxing. He was a chip designer in Bitmain and left the company to form its rival. On September 19th, Bitewei announced its new WhatsMiner M10. The new miner is bound to give Bitmain a stiff opposition.This competition between big mining companies will without a doubt, make sure innovations hit the markets faster.
Despite the increasing competition in the markets, many investors remain skeptical. There’s rumours that the financial numbers of many firms are lost on “needless research” like AI and IOTA development.
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