Is Bitcoin Mining Profitable? Major Companies Drive Out Small Business Ever More Fiercely
April 20, 2018
As the Bloomberg report says, major mining companies like Bitmain and Bitfury may soon oust smaller players from the market. As a result we all can observe a kind of consolidation in Bitcoin mining and probable shift in paradigm so that institutional players enhance their influence to newer scale.
“It’s totally different this year than last year. The bitcoin mining industry was this mysterious dark cottage industry, and it’s about to grow up and about to have elements of institutional scalability at all levels”, says the board chairman at Toronto’s Hut 8 Mining Bill Tai.
Bloomberg calls this a critical point for Bitcoin miners.
Hut 8's Tai paints a dark picture for small miners and implies they are to vanish one by one until there is a single mega-company.
Smaller mining enterprises won’t be able to compete with major rivals for many reasons with one of them being growing need to invest into their hardware while Bitfury and Bitmain manufacture it.
As the range of affluent crypto companies reduces the threat of the 51% attack will be getting more urgent. As Digital Asset Research notes, miners already own up to 30% of bitcoins. Given the trend keeps the pace the situation may turn dangerous as far as security matters are involved for single company may use its hashrate power to destroy the net.