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Japanese Bitcoin [BTC] miners migrate to Mongolia for cheaper electricity

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Japanese Bitcoin [BTC] miners migrate to Mongolia for cheaper electricity
Source: Unsplash

Bitcoin mining is what secures the Bitcoin network and pay the miners to keep mining. Switzerland and other cold countries with cheap electricity are the main targets for such miners, and now Mongolia is attracting Japanese miners for Bitcoin mining.

Tokyo-based e-wallet company Ginco has now set up shops in Mongolia’s capital Ulaanbaatar. Ginco has set up two mining firms to be specific. Ginco set up the company back in October when the mining hash rate fell and so did the price of Bitcoin when other competitors were considering closing up shop due to the fact that mining was not profitable.

The two mining farms that Ginco has consisted of 600 mining rigs and they have plans to increase the number to 1,000 by the end of Q1 of 2019.

Yuma Furubayashi, CEO of Ginco, said:

“The business environment is increasingly harsh, but we can still produce a profit.”

Bitcoin had a good start in 2019 but it fumbled on January 10, 2019, as the price of Bitcoin collapsed by more than $250 in a single hour. This collapse was followed by every other cryptocurrency and the market underwent a massive fall.

Apart from Ginco, iTools also began mining its operations in Mongolia recently and CEO Tamir Bayarsaikhan said that he has plans to increase the business capacity i.e, increase its mining equipment.

Both the above-mentioned companies said that mining in Mongolia was profitable and that Mongolia has become a crypto-friendly town with its recently passed legislation.

Moreover, Mongolia’s largest telecom network – Mobicom, has decided to create its own cryptocurrency known as “candy”, the value for which is pegged with its currency.

Furthermore, Mongolia partnered with Terra, a blockchain-based payment company that is supported by Huobi and Binance. Terra is a company that is focussed on building instant money transfer and lending services.

In addition, Terra’s payment solution will first launch in Ulaanbaatar City’s Nalaikh District through a pilot programme, with plans to expand citywide.

@freedomnomics77 commented:

“@ENERGY Should deploy the free energy secrets on the #Bitcoin network!”





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Akash is your usual Mechie with an unusual interest in cryptos and day trading, ergo, a full-time writer at AMBCrypto and a part-time novice trader.

Bitcoin

Fall in Bitcoin’s market dominance may be correlated to the fortunes of the altcoin market

Biraajmaan Tamuly

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Will Bitcoin's Dominance falter for Altcoins to gain traction in the market?
Source: Pixabay

The trends set by virtual assets have always highlighted the cryptocurrency market’s inherent volatility and spontaneity. Prices lack symmetry and rarely exhibit consistent growth as different factors come into play to dictate an asset’s valuation.

At press time, the world’s largest crypto, Bitcoin, had stormed past the $11,000 mark and was consolidating to push for a surge over $12,000. The rest of the altcoin market however, apart from one or two minor hikes here and there, has been relatively quiet after collectively surging in the early part of the year.

At the beginning of 2019, a significant number of crypto-assets performed significantly well in a group, wherein most assets demonstrated a prominent hike in their values with little to minor price corrections.

A majority of tokens doubled their valuation until Bitcoin breached the $6,600 resistance. Subsequently, altcoins failed to keep pace as Bitcoin continued to test more resistance limits in the market.

Source: Twitter

At present time, Bitcoin enjoyed an unprecedented 62 percent dominance in the cryptocurrency market. As its dominance primes itself to climb over the 63 percent mark, many in the community speculate this could be red flags for the altcoin market.

Major cryptocurrency enthusiasts and analysts have stated that altcoins could significantly capitulate if it so happens. However, past events offer a sliver of hope for the altcoin market.

According to CoinMarketCap, the altcoin market has been significantly affected whenever BTC’s dominance has fallen. During the bull run of 2017, Bitcoin enjoyed a dominance of 65 percent and the global market cap hit a value of $402 billion. However, in January 2018, when BTC dominance plummeted, the global market cap peaked at around $710 billion. The dominance was down by half, whereas the global market cap had almost doubled.

A major reason for the same was money funneling into other altcoins after witnessing a shift in momentum from Bitcoin to the rest of the crypto-market. The present market situation may take a similar path once BTC’s dominance falls, opening the door for other virtual assets to take advantage of the scenario.

However, the present rise of BTC is backed by much more certainty than the bull run of 2017. Hence, a repeat of the January 2018 period may be unlikely, and will happen if and only the market sentiment shifts gears drastically towards altcoins.





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