The Fall of the Bitcoin Mining Giants

Japanese e-commerce giant, DMM.com has lost a massive amount of money after investing in the Bitcoin mining game. The organization lasted only a year in this sector.

That’s just a single story among many Bitcoin mining companies that have gone under, coming only a few days after GMO internet revealed that it would be shutting down its Bitcoin mining division. GMO was a leading producer of Bitcoin mining hardware and also a big miner.

Cryptocurrency mining farms in the Republic of Abkhazia are also losing power. A total of 9000 kWh of electricity have been taken away from the Abkhazia crypto miners, eliminating the chance of any massive mining operation there. That was equivalent to a total of 1800 households worth of power, of which bitcoin mining only accounts for small amounts. While there were only small-scale mining operations in Abkhazia, the government is saying that this is just a temporary measure. According to the government, large-scale miners may come back in the future.

Mining giant Bitmain has also lost a considerable chunk of its investment through two of its subsidiaries, Antpool and BTC.com. The two lost a big part of their hash power over the crypto winter, outlining the struggles that have been affecting bitcoin. Due to this market downturn, Bitmain had to lay off about 70% of its workforce. That shows that even after their biggest rivals (GMO and DMM) are gone, major players are still struggling in the current market.

Hardware manufacturers have also invested a significant amount of capital in the mining game, but it’s becoming tough to sell the miners at such low-profit margins.

On the other hand, BTC.top mining pool has crossed the 50% threshold in Bitcoin Cash, controlling a significant part of the network’s hash power.

That clearly shows that the Bitcoin Cash network is small and needs to see more miners venturing into the network to offer more power and decentralization. However, that’s a pretty hard sell considering the token’s situation at the current price point.

Meanwhile, one of the few that are still crushing the Bitcoin mining is the Grandma’s or Babushka’s in Russia. These old ladies from Central Russia have more than one mining operation system in their basements. This part of Russia boasts of some of the cheapest power rates in the world, making it cost-effective and easy for these ladies to remain very competitive in mining.