CoinFund, Placeholder Touch on Crypto Funds Getting Into “Generalized Mining” as New Investment Method
As the bear market continues to desolate the crypto world, crypto investors are more and more concerned about how to make big profits in the industry. Because of this, now there are a lot of funds that are into what is being called “generalized mining”.
The idea behind generalized mining is that the decentralized web has many ways of letting people be paid for contributing to their services and making money this way. This means engaging in the networks they invest in.
Now, CoinFund and Placeholder are both making a case for investing in generalized mining, as Coindesk reported. They have partnered for the launch of the Grassfed Network, a new initiative which was created in order to showcase the commitment of CoinFund.
According to the companies, generalized mining is a differentiated strategy that crypto funds will start engaging to generate returns. The services include transaction processing, content curation, staking, active governance, market making, etc.
Jake Brukhman, the CEO of CoinFund, defends the idea that generalized mining can be used by investors in order to add the concrete value of their portfolio networks that they are very well positioned to engage with their networks this way.
Placeholder is also very interested in this area, as the company always has been. The company has backed initiatives like Decred, Aragon, and MakerDAO, which are all invested in optimizing cooperation, which is a core aspect of generalized mining.
In fact, this explains why Placeholder is so bullish on Decred. The protocol was originally conceived as a way to improve how governance works for Bitcoin by sharing authority over the whole network across different stakeholders, which lets them participate in governance.
While some people would not putting voting power in the same category as hash power or mining, CoinFund is ready to push its “generalized mining” notion forward with its plans involving Grassfed.
Generalized mining, according to Devin Walsh, a CoinFund analyst, is all the activities which are compensated with on-protocol rewards. A brand notion indeed.
The Future Of Generalized Mining
As mining profits start to go down, it is normal for companies to try creative approaches. Other companies like Multicoin Capital are doing the same, according to Coindesk. Tushar Jain, which works in the company, has affirmed that active network participation and that the investors should start to think more about setting aside capital to support their networks.
However, not everybody seems to be so bullish about the idea. Notation Capital, a fund from Brooklyn, is very torn in this idea, actually. The company’s executives are unsure about how to optimize their investment, though, as they believe that this is an area that is very hard to understand properly.
Despite the naysayers, the companies which are entering this area are set to try their way and get some profits. Nobody knows for sure how big these profits will turn out to be, but 2019 will tell. Will the term “generalized mining” continue? These are questions we have to wait for the answers this year.