Bitcoin Miners Starting as Pioneers and Turning into Giants

The early pioneers of Bitcoin minining are turning into giant enterprises, that are operating worldwide. It all started when the founder of Bitcoin, Satoshi Nakamoto, released a paper on “Bitcoin and the Peer-to-Peer Electronic Cash System”. It described the system as not being reliant on banks and that mining Bitcoin is not an easy process. Today, mining BTC is considered a specialized acitivity. BTC is known as the market’s “digital gold”  and it has leaped massively from 6 cents to $6,500. Not only has the top cryptocurrency on the market attacted investors, but it has also created a rise in the interest of digital asset mining.

Mining BTC requires a lot of computing power, as its job is to solve equations. Miners then proceed to reap the profits for successfully cracking the equation. Before 2013, miners were able to use graphic cards to complete the computations. However, after 2013, a Chinese company created the first ASIC computer chip cards and they mined BTC 50 times faster than the regular graphic cards. Today, these mining sets cost from a $250 to $1,000. It may be more effective for miners to sometimes be a part of a pool and collaborating together to solve the equation, they typically pay a small fee. In the past few months, many AMD and Nvidia graphics cards have been selling out because of high demand from miners. BTC mining hardware and a software company by the name of Bitfury, have generated almost $100 million for the year of 2017. Bitfury’s staff has grown from a handful of employees to more than 250 employees working worldwide. Its customer base has started from Bitcoin enthusiasts and now they have been selling to governments and organizations.

Currently in China, the Chinese governement which also backs Communism, is cracking down on BTC exchanges. As a cause of this, the Chinese yuan has dropped from 90 to below 10 percent. However, this has not stopped Chinese BTC miners, they are still dominating the Bitcoin network. The 6 highest mining pools measured by global processing power, are located in China. One of the top players in the Chinese market, Jihan Wu, stated that he got in the Bitcoin game around 2011. Now, he has turned into a lucrative Bitcoin entrepreneur. Wu is only one example of many investors who have turned into multi-millionaires overnight.