If you’re involved or invested anywhere in the cryptocurrency space, then you know that the Bitcoin halving is the biggest event on everyone’s minds. If you’re someone who invests in cryptocurrency mining companies, then you’re probably busy looking at how your investments stack when competing against other companies, and you should be. The halving is going to produce a seismic shock in the way miners do business, and send ripples through the entire community. This is the only asset class where the entire infrastructure shifts every four years to meet an artificially induced change in supply.
Let’s be real for a moment here. There aren’t a lot of blockchain companies out there worth your attention. Most are floundering around with business plans that sounded prosperous in 2017, while others have pivoted away in search of greener pastures. Others have diversified—extending past base cryptocurrency mining or blockchain services into artificial intelligence, IoT and cloud computing—all of which are excellent uses of blockchain tech.
Proof-of-Work mining exacts a heavy electricity cost. It involves racks of specialized servers all focused on solving a difficult mathematical equation. Those servers eat ridiculous amounts of power not just to power the computations, but in air conditioning because those ASIC rigs get hot.
HashChain Technology (KASH.V) started trading again on the 11th of December, giving long-suffering bagholders the opportunity to cut their losses on the cryptocurrency miner. The resulting loss was 33.3% of their stock price and as of today, they’re down to $0.01 and desperately looking to complete their proposed RTO with Digihost International.