CoinMint is building the world's largest Bitcoin mining operation
I've mentioned it a few times before, but I mind as well reiterate the importance of what I said. Competition is going to change crypto, especially in the mining industry. Bitmain has monopolized the ASIC market, Samsung plans to enter, and Nvidia will surely have it's own product in the future. However, the biggest impact in the short-term may come from a new company that is ready to go big right off the bat.
A company called CoinMint has announced that they will invest $700 million in upstate New York to build the world's largest Bitcoin operation. The project is expected to create hundreds of jobs and will be replacing an old Aluminum smelting company called Alcoa. A 10-year lease has been signed by CoinMint, so we know for a fact that this will be underway soon.
The CTO of CoinMint stated that, "As long as the Bitcoin network exists we anticipate mining to be profitable". That's a very optimistic view of the PoW (Proof-of-Work) validation method that is being slowly replaced by PoS (Proof-of-Stake). One has to wonder if these larger mining operations will go bust, or if they will push crypto mining to a whole new level. Part of that will rely on new, more efficient energy sources, which is probably why CoinMint choose this location. There is plenty of hydroelectric and wind energy in the area.
So what does this mean for Bitmain who has dominated the crypto mining market? Maybe competition will breed more success for both companies going forward, even if Bitmain begins losing its grip on the market. Regardless, Bitmain still remains the largest supplier of ASICs (for now at least).
Even though crypto has gone through a bloody bear market this Spring, the growth of large mining operations should be help create some optimism moving forward. The more hash power introduced into the market, the more transactions a blockchain can complete. This will be important for smart contracts, consumer level use cases, and for businesses to adopt blockchain technology. I guess we'll have to watch and find out.
Link: CoinMint Bitcoin Operation
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