Topic: Might giants of technology and online world enter Bitcoin mining? (Read 528 times)

I would say they enter into the business when they have their own infrastructure and blockchain technologies to maintain. In the meantime though there is analysis and views on the benefits of making an ASIC.

Fidelity is mining Bitcoin

I was wondering the same thing until I started to realize they are smarter than this to invest in mining, they instead could easily be accumulating some cheap Bitcoins over the past 7 years, since such companies have agents all over the world online and offline watching and listening for everything new and interesting and I'm sure they knew about Bitcoin from the inception.

Why would anyone want to jump in into mining at this moment? There's no need to do that for companies because there are way more efficient ways of earning bitcoin than mining. Getting involved in some projects like building more btc atms or accepting bitcoin as a payment method would grow their profits significantly.

Besides that we should not forget that a lot of big businesses are concentrated on usd and are doing really good. If you were a billionaire already in usd would you actually care about bitcoins that much? You would most probably just want for everything to go at the same pace at least thus you could be set for life. People who are already rich don't care about bitcoins and bitcoin is usually a way for the poor to make a huge fortune (not talking about a few rare cases like Winkelvoss brothers and so on).

Also at this time there is a competition for bitcoin which is ethereum. It might be a wiser idea to mine eth at the moment because if the "flippening" happens btc will take a huge L. Then eth price would be unstoppable as the fiat from bitcoins would be moved to eth by a lot of users. So if you mine up a lot of eth now you might become more rich than with btc.

Well if they would put in their own capital in it, then yes it might be bigger than bitcoin, but if it depended on people I really doubt that it could overtake btc. I mean why would anyone buy some shitty company coin that would be most probably centralized and controlled by that company when you have eth and btc? It just doesn't make any sense.

Well if you have enough funds you can always make profit out of it. Just invest into tons of mining equipment and if you have a massive rig it will eventually overcome the price of electricity and in the long run would give big profit. And assuming that big companies can afford it, theoretically they could make big profit.

it is not just about the bitcoin price and being a giant, the investment needs to yield a good profit after the costs. and one of the main and biggest costs of mining is the electricity cost.

most of these miners that you see are in China are there because they were able to acquire 3 things: cheap electricity contracts + cheap and easily obtainable mining equipment + cheap labor.

It's already nearly terminally centralised. It would struggle to get much worse than it already is right now.

If the big giants and the online based corporate enter the mining it will start to function as an centralized system. Also I don't think this will benefit the common users. Probably the difficulty in mining will increase and the small scale miners will get affected much.

I doubt it'll ever be for ASICs. They will no doubt step up when it comes to GPU mining. They must be looking at the sales figures and simultaneously scratching their heads and touching themselves.

ETH, regardless of its ethics, has proven that GPU mining is what crypto needs. Check the node count compared to Bitcoin's. Check the giant mining tumours that have been sucking the life out of BTC mining's diversity and vibrance for what feels like forever.

Maybe companies like Intel and Samsung are already preparing to get in. I have no doubt that it will happen. It's just a question of when. And the higher the price climbs the more likely it is to happen soonish. Because this space could be very profitable for those giants. When SegWit is activated and price may be around $5000 in a year or so I expect one of them to step in.
And imagine what such a news would do with the price? Upwards baby!

They are already getting more interested and they are funding Bitcoin projects. Look at this :> https://news.bitcoin.com/amd-and-nvidia-enter-into-the-graphic-card-for-mining-business/ We are also seeing some interest from governments and states :> https://bravenewcoin.com/news/the-state-of-montana-funds-company-working-on-a-bitcoin-processing-center/

Bitcoin is growing at a rapid pace and merchant adoption will increase when regulators catch up with legislation that define it as a currency or a commodity. The two countries that will be the leaders in this field, will be Japan and India. ^smile^

They have the power to create their own coin that could be bigger than Bitcoin or choose a coin that would give more advantages to them(less market cap, easier to be centralized, etc..) and pump it.

Mine Bitcoin would be willingly give others power.

What companies do you think would invest in bitcoin mining? Nobody would ever do this regardless of bitcoin price, except for crypto funds or crypto companies. By investing in mining, you are investing in bitcoin and taking on a huge amount of risk. Successful businesses do not do this.

first of all these "giants of technology" are making much more money from what they are already doing without the hassle of mining a new technology with volatile price. so they will continue to stick to that. $4000-$5000 profit per block is small for them!

also miners never keep bitcoin so that the price reaches 10K or whatever, they have bills to pay. and as a business you don't hold what you earn you need to spend it to be considered profitable.

What would it take for the large and international companies to dare entering the mining business? are they waiting for $50,000 market

Price and $5000 mining cost? I honestly think they are losing on an opportunity of a life time, if they start mining today even if it costs them

$2500/BTC then 2 years from now when price hits $10,000 they could earn massive profits, talking about hundreds of millions.