Crypto Mining Kingpin Bitmain Sees Its Grip on the Bitcoin (BTC) Mining Industry Loosen
Even when Bitmain is still optimistic that things will eventually turn for the better, it’s rather sad that the slump is still on, unabated. But for a company that was once the ‘undisputed king’ in the world of ASIC mining of Bitcoin, the puzzle is far from getting solved just yet.
In December 17, 2017, when Bitcoin was breaking records, Bitmain was equally flying high. This China-based ASIC mining giant-cum-cryptocurrency mining machinist was the leader, leading the rest by a mile or so.
Yet, 16 months later, the once largest BTC miner is a shell of its former self!
The massive drop in the BTC hashrate is severely affecting the fortunes of the company. From the record highs to the record lows is what described the dilemma that has hit Bitmain at the moment.
In fact, the current drop is what’s making the company’s co-founder Jihan Wu stare at the possibility of firing a fraction of the company’s workforce.
The co-founder has been wearing a bold face, staying optimistic amidst the unpleasant records in the bear market. The bear market that was registered when the value of Bitcoin hit a record high has turned to be the longest to be witnessed ever in the crypto-mining industry.
The company’s main mining pools are BTC.com and Antpool and these two are responsible for up to a massive 42% of the entire hashrate available in the BTC network. However, this figure is so close to the dreadful 51% that makes it susceptible to attacks.
Bitmain has always remained a highly secretive company, keeping important information off the public. But according to what’s available at Blockchain.com, BTC.com now commands a saddening 17.3% while Antpool’s is managing a paltry 14%. This effectively means that the two are at 31%.
The fall of Bitmain
This sad state of events is a sharp contrast to the ‘good old times’ when Bitmain was sailing in the same, blissful space with Bitcoin. The decline in the value of Bitcoin has dealt this massive blow to this crypto mining company. Pundits believe that the dwindling mining hashrate is in line with the current value of BTC.
As the situation keeps worsening, it appears Bitmain’s offices around the world will continue getting shut. Already, the company’s offices in Amsterdam and Israel are no longer operational, not to mention the thousands of employees shown the door.
The latest rumor, published by Diar, paints a sorry state whereby nondescript miners are taking advantage of the slump in mining hashrate. It only remains to be seen how Bitmain will cope and if and indeed when it will emerge stronger.