Crypto Weekly: 3/17/2021
Bitcoin Mining: The Modern Age Digital Gold Rush
As coined by Mark Twain, “During the gold rush it’s a good time to be in the pick and shovel business.” Bitcoin and the wider crypto market are the modern age digital gold rush. As investors rush to gain exposure to scarce digital assets rapidly appreciating in value, critical infrastructure and service providers have positioned themselves to capitalize on the growing market. Even more fundamental than the crypto exchanges, custodians, market makers, and prime brokers, Bitcoin miners and mining companies are among the most important core infrastructure required to ensure the public network operates as designed.
Bitcoin miners form the core backbone of Bitcoin’s blockchain. In order to secure the Bitcoin ledger of transactions, miners burn electricity to computer-generate guesses aiming to solve cryptographic puzzles. The first miner to solve the puzzle receives the right to mine the next block and collect the associated block reward (6.25 Bitcoin subsidy and transaction fees) every ~10 minutes. Through this proof-of-work consensus mechanism, globally distributed nodes can come to agreement on the state of the ledger and ensure the system’s integrity.
Since miners play such a critical role in ensuring the Bitcoin...Reports you may have missed
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