Some of the biggest financial and internet companies in Japan are looking to find new sources of revenue and one of the ways they plan to do it is by commencing bitcoin mining operations. Bitcoin exchanges have already begun with companies such as DMM.com and GMO who are turning their operations upside-down because of the cryptocurrency’s popularity in Japan. Mining rewards have become very profitable (it is estimated that a combined daily profit by miners across the globe is somewhere around $8M – a two-fold increase compared to two years ago), with the currency continually increasing in popularity and usage. Big companies have the upper hand in handling these operations more efficiently because they have all the resources necessary for this undertaking.
In terms of resources, electronic energy is one aspect. Electricity is very expensive in Japan, so this country's mining operators are looking to outsource their facilities abroad, in regions with cheaper electricity in order to keep the electric bills reasonable.
Another important reason behind this new trend is that the country has become the region's sole BTC trading center after China's infamous ICO ban. This decree by Chinese authorities is an opportunity for Japanese companies to corner the mining market, especially as there are rumors now circulating that China is preparing stricter measures against bitcoin mining. The more stakes in mining someone has, the more influential they become in the way things generally operate with the digital currncy – in other words, miners, not just core developers, will grow in power.
GMO announced this new foray in September and has since expanded its business to mining by starting a facility in Europe, as well as the manufacturing of semiconductor chips.
Source:
“Japan's Finance Industry Embraces Bitcoin Mining”, Lujan Sterlin, bitcoin.com, October 6, 2017.
coolsongss
6 years ago
Oh, it is interesting to know daily mining profit is around $8M, so the supply of BTC is far lower than the demands, as the price soars up to $9000 by now ? huh. I am not sure if the supply-demand rule can be logically applied in this situation. BTC began to rise very quickly right after Brexit last year. I really wonder...
Oh, it is interesting to know daily mining profit is around $8M, so the supply of BTC is far lower than the demands, as the price soars up to $9000 by now ? huh. I am not sure if the supply-demand rule can be logically applied in this situation. BTC began to rise very quickly right after Brexit last year. I really wonder how these events will turn out in the future.
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Leon21
6 years ago
The nature of the bitcoin mining industry is changing rapidly. The most profitable mining operations are done in places with low electricity cost. And huge funding for Research and Development. As the mining difficulty increases the scale of mining operations will increase drastically.
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Pointman
6 years ago
It's no surprise that Japan is turning to Bitcoin. The only surprise is they are putting in energy now when they could have done it earlier when Satoshi started the project. As for the Chinese restricting Bitcoin, I can say it's because they love control, which it doesn't accord to them.
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