Is Cloud Mining the Magic Bullet to Bitcoin’s Scalability and Decentralization Issues?

News / 05.04.2020

Bitcoin’s scalability and decentralization issues may soon be a thing of the past. Thanks to a new initiative bringing together Bitcoin and its mining community, the network is set for a significant reinvention.

In a recent episode of the Crypto Conversation podcast, Marco Streng the Genesis Mining’s CEO emphasized the mining community’s role in Bitcoin’s development. Again he delved on the place of innovation, for example, cloud-based mining operations in attaining Bitcoin’s decentralization.

Breaking  Decentralization

Mr Streng maintains that cloud mining can attract more miners hence increasing decentralization. He explained that by eliminating the need for purchasing individual mining machines, cloud mining makes it possible for anyone to mine efficiently. 

Further, this move was necessary for breaking the domain’s centralized nature, a feature exacerbated by more prominent operators.

Coin Dance’s data shows an increasing dominance of a few big mining pools over Bitcoin’s mining domain. Mr Streng contended that to remain sustainable mining ventures will soon have to improve on their energy efficiency. To him, the future of mining lies in the adoption of clean and green energy technologies.

Declining Revenues

The conversation also noted the steady decline in mining revenues within the Bitcoin domain. The two major contributors to this decline are energy expenditure and hardware investments. Consequently, miners need smarter solutions for sustainable operations.

In light of this, Mr Streng holds that cloud-based mining and the use of renewable energy in mining will profit not only the miners but the Bitcoin community as well. Additionally,  the move will ingrain ‘trustlessness’ and decentralization.

Before Bitcoin’s emergence, it was laughable to imagine decentralized currencies and finance. The last decade, however, has seen an increased acceptance of cryptos such as Bitcoin. The appeal has caught on among institutional investors too.

Dacosta Osei-Tutu, a first degree holder in Nursing, who couples his Nursing career with blockchain blogging, has a great passion for the blockchain technology and aims to play a vital role in applying this revolutionary technology to disrupt the healthcare system in Africa.