Great War for Bitcoin Cash and Chinese Giant rise. What happened with mining in the year 2018



Jun 26, 2018
Every miner cherish in his memory times when a single farm consisting of as little as six NVidia cards could bring you as much as 1 ETH per day. It was the time before the great cryptocurrencies rise in the year 2017, in the time even small miners were able to make a fortune, not big but still a fortune. Mining industry used to be an empire on which the sun never sets.

In the year 2017 when the crypto prices were going up very fast, amd every morning of Ripple owners used to start with some pleasant understanding of that they are rich, most mining farms were built in the houses, basements or even rooms of their owner. The hashrate had been going up, while the mining hardware producers announced more and more new products.

The fall of the market which took place in the next year was really bad for small and average miners who must have lots of fiat in order to buy new hardware, pay electricity bills, provide workers with regular salaries and sometimes even pay for rent of the place where their farms are kept.

Great War for Bitcoin Cash and Chinese Giant rise. What happened with mining in the year 2018

Lots of crypto users are sure in that traders are those who have affected the market so the bear trend took control over it. These thoughts were caused by the fact that miners were against HODL strategy and used to hedge risks, playing on short positions.

In the end of November, just as soon a powerful blockpost on the level of $6000 was lost, there was a real panic among all the miners. Tens thousand of ASIC miners were turned off, while the hasharate has fallen to the level of May 2018. Some time after there was the second biggest falling in the bitcoin history, it has felt on 15,3% and it has caused lots of negative effects:

Bitcoin Mining Difficulty falls for the second time -

What is more, mass media had been spreading information about that Ethereum GPU mining, which user to be extremely popular among common miners, is no longer profitable. While the “Death Spiral” could be heard on any popular channel and mainstream Twitter accounts.

But here we are - in the future, in the year 2019, the bitcoin is still alive, hashrate is still giant, miners are still interested in mining, traders are involved in trading. So everything is fine and we can now take a closer, sober look at what has really happened with mining industry in the year 2018.

Bitmain. The most important Player

The year has started with the biggest mining hardware producer running from its native country China, after had been pressured by the government. This company was Bitmain and at first it has opened its headquarter in Singapore, and has even moved oversea - opened other facilities in US and Canada.

At the same time other companies have been doing the same - what makes us think that it was a global trend. For example, has opened its offices in Canada and ViaBTC in Ireland and America.

In the Spring there was a news saying that the Washington state government has approved giving of 10 acres for rent with an opportunity of buying it in the future to [Ank Greek], which is a daughter company of hardware producer Bitmain.

What is more, Chinese giant has opened lots of service centers, i.e. in Europe or Russia, where clients can get help with their hardware according to guarantees.

In the Summer another Bitmain office was opened, at this time in San-jose, which is considered to be silicon valley company. At the time, company had been working hard in order to organize the first IPO of crypto company on Hong Kong Exchanges and Clearing (HKEX).

Bitmain head has announced company plans about having the first IPO outside China in the interview to Bloomberg in the beginning of June. Then how he has stated company need money to work on other, even more ambitious projects, such as AI developing. Some experts however, has expressed concerns of that the Bitmain are planning to run an IPO in order not to develop technologies of the future, but to get over its biggest competitor - Canaan Creative.

To sum up everything, the most probable reasons of Bitmain's interest in having an IPO are:

  • Fighting with its competitors, mostly Canaan Creative, that are also interested in attracting capitals using stock exchanges.
  • Making the capitalization bigger. Because at the time Bitmain announced its plans company funds were only as big as $105 million, what is obviously not enough for Chinese giant
And Bitmain has really achieved half of its goals, money attracted from investors saved Chinese company from crisis in the second quarter of 2018 its profit then was $343 millions comparing with only $105 in the previous.

What is more, we can do a little analysis here, and everything we need is data from BitMEX that are available for public:

  1. The company has lost $0.5 billion on producing ASIC, because of improper mining chips or overrating of its products.
  2. The company needed $785 million from new investors to keep itself away from crisis.
  3. In the second quarter company has lost $400 million simply because there were too many products available on the market and they had to decrease prices.

Another Bitmain's crisis - Bitcoin Cash

Taking bad financial position of Chinese company in count it seems obviously that lots of problems had to happen in the cryptocurrency that is videly controlled by Bitmain - Bitcoin Cash. The conflict inside the biggest bitcoin fork was seen clearly in August, when nChain company has announced soon release of Bitcoin SV client.

In September everyone has finally understood that these aren't ambitions, but real plans. At the time nChain head and lots of pools affiliated with him started to get more and more power and literally took control over blockchain network.

At the same time, CEO of and the biggest producer of mining equipment known as “Bitcoin Jesus” found himself against their actions - he has supported implementation of Bitcoin ABC client

These events have started so known Hashartes war, that became even more intense after hardfork what has caused Bitcoin Cash network to divide into two parts. pool supported Bitcoin ABC giving big amounts of power to them, while the miners actions have affected hashrate in the network as well as its price.

However, just two weeks after the war has started Bitcoin SV team made an announcement of that they aren't and never weren't on the original Cash chain and demonstrated their own road map.
BitStarz Casino
Advertise Here!
All HYIPs Monitor
Investment Offer
Coin Payments
Best Change

Similar threads

Rules Help Users

You haven't joined any rooms.

    You haven't joined any rooms.
    Forgot your password?