Writing about the future of Bitcoin with any certainty is like saying someone knows a certain horse will definitely win the Triple Crown this year. The fact is that the technology could go anywhere, legislation could change everything, and — Bitcoin culture continues to evolve somewhat sporadically. But there is no fun in not speculating; so Genesis Mining CEO Marco Streng decided to answer the impossible questions.
Because Genesis Mining is one of the largest suppliers of any Bitcoin company in the world, Streng is uniquely informed about what new technologies are coming into vogue, which are over-hyped, and what research could change the technology tomorrow.
“There is a lot of innovation and pioneering going on in the mining world. Advancements range from innovative data center structures, intelligent and more powerful mining farm monitoring solutions, to more and more optimized chip designs for lower and lower nanometer scales."
Bitcoin culture today places a premium on the crowd-monitored nature of the technology, but as the power continually gravitates towards large companies and large data centers, that culture’s voice is losing its thunder. The question is whether the average user will embrace the new era of mining or reject Bitcoin altogether. While the currency still represents the most regulatory-free currency in the world, its early adopters envisioned nothing short of utopia. Big companies are as prone to corruption as any other organization, or so the argument goes.
Streng got the question if the consolidation of mining will hurt or help the Bitcoin movement, especially concerning the Bitcoin faithful.
“What people may forget is that the higher the total mining power in the network, the less vulnerable Bitcoin is. In the early days, a private individual could possibly gain enough influence to control the Bitcoin network by a large enough investment in mining. Times have changed and it is much harder to do that now.”
One of the biggest obstacles still facing the currency is evangelizing the many millions of people who believe it is a fringe movement, a fad, one that will disappear quietly in a few years. It does continue to edge its way in to the mainstream with small but notable successes, like Rand Paul’s new presidential campaign website accepting donations in BTC. And the technology does continue to gain high profile backers from numerous industries. But even with the most rose colored lenses, no one can say that Bitcoin is mainstream. Streng doesn’t think we will have to wait too long for that to happen.
“For those of us born in the late 80’s and early 90’s, we grew up with the internet being a major part of our lives. We didn’t have to adopt the technology, we simply had to learn to use it and convince our parents we
needed to upgrade our dial up connection. Change is hard, and we saw older generations struggle to use Google instead of libraries and Amazon instead of RadioShack. Despite some people opposing it and all the negativity it received, the internet prevailed and has changed the daily lives of billions of people. I understand that Bitcoin sounds crazy to some, but inmany ways it is following the same path as the internet, and I think it will change the world just as profoundly.”
Time will tell if Streng is right — if a more centralized infrastructure can mesh with Bitcoin culture, if the technology will be embraced by the general public, and if officials in the US and other countries decide not to regulate. But one thing is for sure, many thousands of highly informed critics said Bitcoin would never last as long as it has.
Hong Kong based Genesis-Mining was established in October 2013 with Bitcoin cloud mining facilities located in Iceland, USA and Canada. Genesis-Mining has a partnership with the world’s largest ASIC manufacturer; Spondoolies Tech.
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