Coinspeaker
Report: Corporate Bitcoin Mining Is Threat to Future of BTC

The rise of institutional investment and corporations’ involvement in Bitcoin (BTC) mining pose a threat to the decentralized nature of the cryptocurrency. A recent report by Bitfinex, a well-known cryptocurrency exchange, sheds light on how the mining industry has transformed over the years.

The report reveals how Wall Street funding of public Bitcoin mining companies has affected the incentive structure behind mining activities, stating that publicly listed BTC mining companies are now more focused on making profits and meeting investor expectations than upholding the original values of the coin’s community.

Initially, the crypto mining sector was dominated by individuals, as they were rewarded with block rewards and transaction fees. However, the process became increasingly difficult and challenging as an influx of institutional investment and large-scale mining companies with vast resources emerged, giving them a significant advantage over individual and small-scale miners. The report sta...