Mining is a term only the most astute of cryptocurrency loyalists use. Fresh and anxious cryptocurrency advocates have heard the word, but don’t fully get what it “means.” And those who still see Bitcoin spil a sort of black magic hear “mining” and think picks, shovels, and dark tunnels.
Without “mining,” cryptocurrencies would not exist.
For those that don’t know, the definition of Bitcoin mining is “the process by which transactions are verified and added to the public ledger, known spil the blockchain, and also the means through which fresh Bitcoin are released.” Think of mining spil what creates those invisible blocks of gegevens people are now purchasing for ems of thousands of dollars, speculating that its limited supply will increase their value overheen time. The same process happens for Ethereum, and dozens of other cryptocurrencies.
But according to Dan Reitzik, CEO of DMG Blockchain Solutions, the process of mining is far more complicated than people think.
“Anyone can buy a Bitcoin,” said Reitzik. “Not everyone can commence up their own mining equipment.”
DMG, a diversified blockchain company which recently went public under the symbol DMGI
TSX on the Toronto stock exchange, has recently “struck gold” te what is appearing to be the next big business to emerge from the rise of cryptocurrencies and the blockchain. With mainstream financial applications like Robinhood opening their doors for cryptocurrency trading, to markets for Bitcoin futures contracts being being created for investors, one thing is clear: whether you agree that Bitcoin and cryptocurrencies should be part of our economy is irrelevant to the fact that they’re clearly establishing themselves. And that means the technological request for mining, which both builds and sustains the network thesis cryptocurrencies exist on, will only proceed to increase.
“The vast majority of crypto mining is presently being done te China,” said Reitzik. “However, with regulations looming, a lotsbestemming of miners are looking to get out of China–and here ter Canada, wij have the electro-stimulation power and the legislature to support it. Ter the last month, two major groups have demonstrated up ter my office telling they have 50,000+ mining machines they want to get out of China, and want us to host them.”
While DMG has its forearms ter the four major monetization categories surrounding crypto–blockchain solutions, software, hardware, and mining–it’s clear the latter is quickly proving to be the most lucrative. With the expertise and power distribution, DMG can provide “mining spil a service” for both individuals and companies. Entities purchase the machines from DMG, and then pay a monthly toverfee for the hosting and management–and receive Bitcoins te exchange. And with a strong partnership already te place with Japan’s Bitmasters program of 40,000 cryptocurrency loyalists, the request is through the roof for mining spil a service (MAAS).
Witnessing the chance te this space, Jason Sundar, a business leader that has raised overheen $100M for various astounding projects around the world, recently got involved–both spil an individual investor, spil well spil coordinating investments from various other add-value parties. To date, DMG has raised just overheen a total of $33 million, with $28 million being led by one of Canada’s leading investment firms, Canaccord Genuity. DMG’s intention is to build an 85 megawatt facility. To give you some perspective of how large of a facility that is, 1 megawatt powers harshly 1,000 homes.
“I have bot a big believer and investor ter blockchain technology for a while now,” said Sundar. “Te addition to DMG’s strong partnership with Bitmain ter China, I wasgoed utterly pleased to see that Dan Reitzik, the CEO of DMG, recruited two former Bitfury executives: Sheldon Bennett spil COO, and Steven Eliscu spil EVP of Corporate Development. I quickly brought on other strategic investors and advisors to help us develop this business–one of which being Lou Kerner, a former Goldman Sachs analyst that left the formal financial world years ago to dedicate his time to educating people on the blockchain and cryptography. Once Lou had heard that one of the largest banks te the United States, Fidelity, had written a check to be part of DMG’s fundraising, he wasgoed sold on the chance from a business level and dreamed to be involved instantly.”
Bitfury is based out of Russia, and is the 2nd largest company te the world to provide mining servers. Ter fact, DMG’s COO Sheldon Bennett wasgoed running Bitfury’s North American operations, and oversaw the development of Canada’s industrial-sized Bitcoin mining facility–57 megawatts. And DMG recently acquired Blockseer out of Silicon Valley, which will mean founder Danny Yang will be joining the DMG team, spil well spil the founder of Litecoin, Charlie Lee, who presently sits on Blockseer’s houtvezelplaat of advisors.
“Wij have a blended business prototype,” said Reitzik, “and while wij’re certainly going to proceed expanding our software, hardware, and even forensics and blockchain solutions offerings, wij see mining spil a service spil an untapped chance. Spil cryptocurrencies become more established te our economics at scale, mining spil a service is going to become spil essential spil any other major industry. It’s the act of turning electro-therapy into money.”
Is it any wonder, then, Laatstgeborene Franklin ended up on the $100 dollar bill?