GMO Internet Group is Investing $300 million in Their Bitcoin Mining Business

GMO Internet Group is a company like most others and you would not probably hear about this company if they did not announce a huge undertaking for the next year. This company usually hosts web services and it registers domains for clients. However, this Tokyo based company has decided to enter digital currency business by announcing that they will be investing more than $300 million into the Bitcoin Mining business during the next year.

The company has estimated that Bitcoin has already proven to be a stable investment and that cryptocurrencies will become universal currencies in the next couple of years. That, in turn, will create a global economic market that does not take any kind of borders into consideration. Based on their announcement, it can be concluded that each day during the first six months of this campaign Bitcoin miners will have $10 million available to them.

The plan of this company is to create their own mining chips and if they succeed in doing that, the bitcoin mining industry will enter a race for dominance. According to their plans, their chips will be using 7-nanometer nodes which means that they will be up to four times more efficient than the 16-nanometer nodes that have become standard in the industry. Because of that, all other Bitcoin miners will adapt their businesses and update to the more efficient nodes.

Looking at their business plan, it seems that GMO Internet Group will be following the pattern that one of the world’s biggest Bitcoin miners, Bitmain from China, has done. GMO’s plan is to operate their own mines as well as to rent their mines to other investors. Besides that, as we have mentioned, they will be introducing their chips that will be sold as mining rigs. According to the announcement, GMO Internet Group will be basing their Bitcoin mining business somewhere in Eastern Europe where they would have an access to cheap and stable electric power.

The introduction of a new Bitcoin mine could create a lot of problems for already existing miners and their business. However, this will be a huge thing for the Bitcoin market as it will mean the bigger presence of Bitcoin in the market. For those miners who did not manage to pay off their investment in the mining business, this news might be hugely problematic. The reason for that is the fact that it is very much possible for their mines to become obsolete which would give them little chances for paying off their machines.

The new mine is not the problem. However, the biggest problem are the nodes that this mine will use as not all mines will be able to upgrade. Big companies will not have a lot of problems with introducing 7 nm nodes but it will take some time for them to change all the nodes. Besides that, the new mine will hugely reduce the dependence of Bitcoin on the Chinese mines because only Bitmain takes up 30 percent of the entire mining market. Because of that, many investors have welcomed this decision while Bitmain still has not commented on this news.

Written by: Vedran Ostojic

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