If you spend much time online at all, there’s a good chance you’ve heard of Bitcoin by now. If not Bitcoin specifically, maybe you’ve just heard of cryptocurrency more generally. Cryptocurrencies, put simply, are a category of block-chain technology that relates to a virtual currency. There are a bunch of different cryptocurrencies on the market, and they all operate a little bit differently. That being said, Bitcoin was one of the first, and is still one of the most popular cryptocurrencies to exist. Bitcoin mining is a process through which the blockchain is both verified and continually built. Bitcoin mining is also a way for miners to earn Bitcoin.
Bitcoin mining is based on blockchain technology and a concept known as proof of work. This concept requires miners to solve an equation which then verifies the next block in the chain. This seems like it would be an easy and straightforward way for everyday consumers to earn currency through a fair process in which anyone can partake. However, there are some major speculations when it comes to Bitcoin and cryptocurrency in general.
One of the major downsides of Bitcoin and other like-cryptocurrencies is the significant amount of energy that is used during the mining process. In a day and age of environmental crisis and global warming, industries that are environmentally unsustainable are fading into the background.
Yet in some ways, pure-play Bitcoin mining may be able to advance the industry.
Gives Relevant Market Comparisons
A pure play is a business or organization that is solely focused on a single product or service. This is a unique business design, but can be appealing to certain investment groups, and can offer other helpful benchmarks for a given industry. For example, many organizations diversify their business offerings in the way of both products and services across a variety of industries.
Pure play organizations, though, avoid this strategy. Instead of focusing on diversification, pure play brands are single-minded in nature. One way that pure play organizations benefit the industries in which they exist is that they are helpful in establishing benchmarks when industry analysis is performed. The more solely focused an organization is, the easier it is to evaluate.
This is actually extremely valuable when it comes to Bitcoin mining and other cryptocurrency mining because these industries are super-saturated and purposefully complicated. There are new cryptocurrencies appearing on the market seemingly every week, and this can make it a difficult market to evaluate. On top of that, cryptocurrency is notoriously volatile and unstable, and going even further than that, speculated valuations are a big part of the game when it comes to cryptocurrencies. All of this together makes for a marketplace that is extremely difficult to navigate, confusing for consumers, and nearly impossible to get an accurate read on as an analyst. As such, pure play Bitcoin mining organizations in the marketplace are good institutions to look at when attempting a cryptocurrency industry evaluation. Without these pure play Bitcoin mining organizations to look to for analysis, the industry would be even harder to decipher and predict.
Any investment presents a certain level of risk. Balancing risk and reward is one of the economic fundamentals. This is also why diversification is such an important investment strategy in most scenarios. However, with pure play organizations, diversification is in contrast with the main strategy.
As such, a pure play organization represents an investment avenue for investors who want to bet on a single industry without taking unnecessary risks in other tangential or even related industries. Pure play Bitcoin mining organizations offer a way for investors to bet on the Bitcoin mining market and the Bitcoin mining market alone, which in turn protects their other investments.
Can Lead to Industry Revolution
Another reason that pure play Bitcoin mining is so important in today’s day and age is because of the environmental connotation that cryptocurrency mining has garnered for itself. With such high energy demand, Bitcoin and other cryptocurrency mining has to become more environmentally sustainable if it is to have a role in the economy’s future.
Knowing this, pure play Bitcoin mining organizations are dedicated to finding carbon-neutral or negative-carbon solutions in order to bring Bitcoin mining and environmental sustainability to the same table.
Having One Sole Focus
There is something to be said when it comes to specialization. Instead of splitting focus and resources by attempting to break into multiple fields and industries, pure play organizations become extremely specialized in a very specific area.
Pure play Bitcoin mining organizations are dedicated to changing the Bitcoin mining game by making impactful operational changes that allow for a future in which cryptocurrency is environmentally sustainable, and therefore actually viable as a marketplace solution.
There is a lot of information about cryptocurrency available online, and no one should make any cryptocurrency investments without conducting thorough independent research.