Is Generalized Mining a Way Forward?
February 13 2019 - 11:27AM
ADVFN Crypto NewsWire
Bitcoin Global News (BGN)
February 13, 2019 -- ADVFN Crypto NewsWire -- Last year was far
from ideal for the crypto mining space due to the extended bear
market, which is still largely continuing today. In response to the
serious hit that mining firms and truly, all crypto firms have been
taking during these tough times, new strategies have arisen for
crypto investing and crypto fund management.
One of these strategies that has
reportedly risen to the head of the pack is called “generalized
mining,” which is in a way, both an accurate term and somewhat of a
misnomer at the same time. According to an article from CoinDesk
today, crypto investing may be radically shifting toward active
participation over long-term “hodling.”
What this refers to is crypto funds
providing services to and even acting as users for blockchain
networks as they start to grow to actively bring about meaningful
traction in their early stages. Messari, which is progressively
becoming known as more and more of a valuable source for impartial
crypto research, elaborates on how this works out in their own post
on generalized mining.
Contrary to what CoinDesk appears
to suggest about this particular investment strategy, Messari
defines generalized mining as a crypto mining put together with
crypto investing, due to the fact that the investors act as active
nodes on the networks that they have a stake in. This can mean
actively being miners or simply providing services that add value
to the network.
With this in mind, whether or not
this strategy will radically change the power structure of the
crypto mining niche remains to be seen. Since it has reportedly
only just begun to be put into practice today, for now, it is far
to conclude that the Bitmain’s of the world are safe as they can be
with all of their resources in a very volatile and often
unprofitable business arena.
By: BGN Editorial Staff
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