As only few people know how to mine Gold from earth, similarly only some people understand the creation of Bitcoin, means how Bitcoin is mined.
The term ‘mining’ is used by the cryptocurrency loyalists or community. Beginners or new cryptocurrency investors have just heard this word, while don’t get the complete meaning of this word. Besides, there are people who think of ‘mining’ as black magic or imagine shovels, dark tunnels, and picks when hear ‘mining’.
Cryptocurrencies will not exist without ‘mining’
Bitcoin mining is the process of verifying the transactions and adding them to the blockchain (public distributed ledger). In addition, through mining, new Bitcoins are made. You can think of Bitcoin mining as the one that creates invisible blocks (including data of people that purchases thousands of dollars) speculating the limited supply of Bitcoin will increase with the time. This mining process goes for Ethereum, Bitcoin Cash, Monero, Zcash, Dash, Litecoin, and other digital currencies.
Though as per the CEO of DMG Blockchain Solutions, Dan Reitzik, the mining process is much complicated in comparison to what people think.
Further he said, “Anybody can purchase a Bitcoin, but not everybody can set up its own mining rig.”
An expanded Blockchain company, DMG has recently went live with ‘DMGI ~ TSX’ symbol on the stock exchange of Toronto. Recently, it has ‘struck gold’ in the things to become a big business in order to emerge from the blockchain and rise of cryptocurrencies. Through financial applications, namely Robinhood is opening the way for digital currency trading and market the contracts of Bitcoin futures (prepared for investors). With this, one thing is quite clear that whether you believe that cryptocurrencies, including Bitcoin should be economy’ part is completely unrelated to the fact that they are still establishing or developing. Thus, it means that mining demand for cryptocurrencies will continue to rise in the coming time.
Reitzik said, “Currently, major cryptocurrency mining is being done in the hub of cryptocurrency mining companies and exchanges, China.” Though, with the increasing regulations, plenty of miners are planning to leave China as Canada has the legislature and electricity power to support cryptocurrency mining. Last month, the two groups have come to my office explaining that they possesses more than 50,000 mining equipment and they wish to quit China and want DMG Blockchain Solutions to host their companies.”
As DMG is working in four monetization categories in the cryptocurrencies, such as software, blockchain solutions, mining, and hardware, it is quite clear that the latter prove to be lucrative. Through power distribution and expertise, DMG can offer MAAS – Mining as a service for enterprises and individuals. Entities should buy the mining equipment from DMG Blockchain Solutions, pay monthly charges for management and hosting, and then they can receives Bitcoins accordingly. Already, with a strong alliance with Bitmasters program of Japan that includes around 40,000 cryptocurrency enthusiasts, the MAAS (Mining as a service) demand is crossing the roof.
Witnessing the cryptocurrency opportunity, a renowned business leader (Jason Sundar) has collected around $100 million for different outstanding projects across the world and even involved as an investor and coordinating investment from different add-value parties. Till date, the company has raised more than $33 million with over $28 million that are being led by leading investment firm of Canada, namely Canaccord Genuity. The intention of DMG is to establish 85 MW facility. In order to provide some perspective of this facility, 1 MW powers around 1,000 houses.
Sundar said, “I am a big investor and believer in the blockchain technology.” “Along with the strong partnership of DMG with China’s Bitmain, I am pleased to witness that CEO of DMG Blockchain Solutions, Dan Reitzik recruited two former executives of Bitfury – Steven Eliscu (EVP, Corporate Development) and Sheldon Bennett as Chief Operation Officer. Additionally, I brought advisors and strategic investors for the development of business, out of them one was Lou Kerner (a former analyst of Goldman Sachs) that left the financial world in order to spend time educating people on cryptography and blockchain. After hearing that Fidelity (one of the biggest banks in the US) had written for the fundraising check of DMG, he sold on opportunity and wish to get involved immediately.”
The second biggest company of the world, Bitfury is located in Russia and provides mining servers. The COO of DMG, Sheldon Bennett was managing the North American operation of Bitfury as well as the development of Bitcoin mining industry of Canada (57 Megawatts). Recently, DMG acquired Blockseer from Silicon Valley that means Danny Yang will soon join DMG as well as Charlie Lee (Litecoin’s founder) that sits on the advisors board of Blockseer.
Reitzik said, “We have a combined business model.” We are going to expand our hardware, software, blockchain solutions and forensics offerings, and we see MAAS (Mining as a service) as an opportunity. Cryptocurrencies or digital currencies have become well-established in economics and mining as a service is also becoming quite essential as other industries. This is the act of changing electricity in money.”