The cloud computing company BitDeer enters the mining business. With prominent support from AntPool and BTC.com, BitDeer wants to use its cloud mining service to attract private individuals to Bitcoin Mining.
The bear market also has its good side: as a large number of miners are forced to shut down their mining hardware due to low prices, the hash rate drops. Those miners who are still able to operate profitably in the market are also faced with a decreasing difficulty. The current crash of the hash rate has almost taken on historic dimensions. With a minus of 15.13 percent, we are witnessing the second largest waste of the Mining Difficulty at Bitcoin ever.
New competition for the Bitcoin formula industry
BitDeer sees this as an opportunity rather than a threat to the Bitcoin formula infrastructure and is preparing to enter the Bitcoin formula industry. Together with BTC.com and AntPool, the platform officially launched the cloud mining collaboration on 12 December. This was announced in a press release on December 12.
In the press release, however, the value proposition reads no different than that of the classic cloud miner.
“BitDeer makes it possible to mine Bitcoin without having to buy expensive mining hardware, the press release says.
Ultimately, cloud mining should lower the market entry barriers for Miner by allowing private individuals to rent computing power from the pools. Depending on the size of the investment, a share in the proceeds from mining, i.e. the coinbase rewards and transaction fees, will then be offered.
The solution for small players is Pool Mining
Mergers such as this lead to more centralisation in mining, but are sometimes the only way to survive in the market, according to BTC.com CEO Zhong Zhuang.
“Large players will further expand their competitive advantage by operating large mining pools”.
However, even small miners will remain competitive if they join forces to form pools.
“That’s why BTC.com appreciates the partnership with a platform like BitDeer and is looking forward to attracting more private individuals to mining,” said Zhuang.