The future of mining is in the hands of market monopolists

Many private mining farms are at risk of bankruptcy due to the high cost of the process. Only the largest companies will be able to remain in this market in the near future.

One of the world's largest cryptocurrency mining companies intends to directly use the power of a nuclear power plant in the near future. This was stated by the famous venture capitalist and member of the board of directors of Bitfury Bill Tai. It will be possible to use nuclear power to mine cryptocurrency within a year and a half.

According to estimates from Crescent Electric Supply, electricity can cost from $3,224 to $9,000 to mine one Bitcoin.

Today, the most popular cryptocurrency in the world is trading just above the “technical” range, defined as $6.6-7.3 thousand. Such a Bitcoin rate could lead to the fact that cryptocurrency mining will result in bankruptcy for individual miners. And only the consolidation of efforts for mining by the largest companies will become economically profitable.

Already today, large companies engaged in the “mining” of cryptocurrency are striving to become even larger. Industry leader Bitmain, which heads two of the world's largest pools, has opened offices in Switzerland and the US and is exploring opportunities to expand globally. Over the next six months, Bitfury plans to raise more than $100 million to produce and sell portable mining rigs, each of which will cost at least $2 million, Tai said. He is also opening his own additional farms in the Middle East, Africa and Canada. According to Tai, Bitfury benefits from increasing capacity, despite the current price situation, due to the scale of the projects.

In his opinion, the future of mining is in the hands of large market monopolists who will be able to minimize costs, where a significant part of the cost is the cost of electrical energy.

Such a development of events could be dangerous for the crypto market. A monopolist always seeks to manipulate the market in its own interests, and control over a large number of transactions will make it possible to dictate conditions and influence the market, as well as adjust the development of blockchain technology, guided by personal interests.