2015 Was Do or Die for Bitcoin Miners But Promise Lies Ahead

Dave Carlson is a software engineer and 10-year veteran startup entrepreneur. Beginning in 1999, Dave has played a primary role in several multimillion dollar startups and personal ventures.

In 2010, Dave discovered bitcoin and soon after founded “decentralized” bitcoin mining firm MegaBigPower. 

Mining - light at the end of the tunnel

2015 continued the trend: as the price of bitcoin fell and mining difficulty rose, miners were forced to sell both their bitcoin holdings and newly mined bitcoins to cover operating expenses and fuel growth.

This increased downward pressure on the price of bitcoin, and gives us all a painful reminder of how this network is designed with respect to miners: bitcoin punishes the greedy and the weak.

Just as in 2014, we saw attrition in mining operations (and among manufacturers) – the less favorable economic conditions meant many were unable to survive. The explosion of hashrate coming from China eclipsed operations in other parts of the world, and we quickly found the conditions at which many operations had to ‘blink first’.

First-mover (dis)advantage

Early leaders in the ASIC market found themselves lagging newer players, and in a declining market, struggling to find the funds to maintain their position.

To carry the same market

Read more ... source: TheBitcoinNews

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