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Bitcoin Mining Companies in huge trouble: The end for mining industry?



Bitcoin mining has started to become unprofitable and companies are facing losses due to the decreasing price. Let us see the current scenario of two giants

Due to the continuous bear trend, the bitcoin mining industry has been suffering the most as the bitcoin mining operations have started to become unprofitable or rather companies are facing losses due to the decreasing price of bitcoin. Let us see the current scenario of two giants of the bitcoin mining industry:


GMO Internet:

GMO internet is a giant Japenese company that decided to come into the bitcoin mining game last year when bitcoin price was touching $20K. They were not only mining bitcoin themselves but they were also offering cloud mining contracts and selling hardware. When they first announced their launch, everyone was excited as they were being called the ‘Bitmain Killer’, as finally a giant corporation which has enough money to be able to make on Bitmain head on. Unfortunately, soon the bear market started and a massive amount of people had already joined the bitcoin mining industry until then, so bitcoin mining started to become unprofitable very quickly especially for smaller mining companies and anyone who couldn’t remain incredibly competitive in terms of getting super cheap energy or actually owning the means of production of that energy.

GMO started to suffer from extraordinary losses of over $300 million particularly due to their bitcoin mining operations in quarter four of this year. In quarter three they had made about $23 million on their bitcoin mining operations but they GMO has officially announced that they’ll not be selling any bitcoin mining hardware. Even though they have stopped their bitcoin mining hardware sales, they’re still mining bitcoin with the machines that they have but they are still looking for a region where they can get cheaper power or cleaner energy.



Bitmain has been having a very hard time this year as well. When it comes to the recent announcements that they might be cutting 50% to 80% of their staff, that is devastating. They had recently launched a new generation of miners and it obviously takes a lot of time and energy to research into developing these new products and to make these new chips but not a lot of people are buying these new products as due to the bear market and bitcoin price crashing down, it is being very hard to make profit out of bitcoin mining business. Bitmain runs a giant amount of the actual bitcoin mining and they have maintained that in terms of being able to keep the miners running and keep some kind of profitability running and they have been expanding their operations around the world like opening up some big new facilities in Washington State and Texas. But they are definitely struggling hard in the current market situation.

The Bitcoin Cash War is the part that has hurt Bitmain the most because they not only had to spend a lot of money to fight that war, but Bitmain has around 1 million Bitcoin Cash and the price of Bitcoin Cash since the start of the year has crashed monumentally. They also control a huge amount of Litecoin too and again they have been holding on to these assets as the price has gone down and now they cannot fund their staff, their development and their investment arm anymore which is very troubling news for Bitmain.


Hash Rate and Difficulty

Although bitcoin mining has become unprofitable for some miners, there is still a lot of hash power on the bitcoin network and even though we have had some pretty substantial decreases in the network hash rate and in the difficulty, this is a pretty normal market reaction. People who cannot compete will turn off their machines and people who can still mine bitcoin profitably will continue their bitcoin mining operations. If we compare the current hash rate and network difficulty with the hash rate a year ago, we are way higher right now so bitcoin continues to be a very secure network and even though companies like GMO went down, we will see new competitors come in. Samsung, the multinational conglomerate is also working on bitcoin mining hardware. So definitely the game is still too far from being over yet.


What are your thoughts on the future of bitcoin mining? Tell us in the comments section below.


Cryptocurrency Price Analysis: Great Week for the top 10



The current week has proved to be quite amazing for the cryptocurrency market as all major coins are holding green. The total cryptocurrency market rose by around $1.5 billion yesterday night with the price of bitcoin reaching $4100.



BTCUSD Price Chart

BTC/USD Weekly Price Chart

Bitcoin broke the $4000 resistance level on 17th March and has been over this range since then. Bitcoin has turned the previous resistance into strong support now and has moved upwards slowly currently trading around $4120 (according to Bitfinex chart) with around 1% increase in the last 24 hours. If bitcoin is able to maintain its position above $4100 range for long, it might soon move ahead towards the major long term resistances such as $4500 and $4600.



ETHUSD Weekly Chart

ETH/USD Weekly Chart

Ethereum also saw a nice bullish momentum this week after reaching the highest point of $143. Currently, Ethereum is trading nicely around $140 and is experiencing a few dips while trying to move upwards.

Unlike other top 10 coins, Ripple market is experiencing volatility from the last week but the momentum is still quite bullish.

LTCUSD Weekly Chart

LTCUSD Weekly Chart

Litecoin has been following trends and is steadily trading around $60 from the start of the week. Litecoin has increased more than 1.67% in the last 24 hours which makes it the best performing crypto of the day (in comparison with the top 10 cryptos according to market capitalization). LTC is currently trading around $61 (according to Bitfinex chart).


The overall cryptocurrency market is in a bullish momentum with sings of further gains. After a long bearish trend, cryptocurrency analysts are now believing that the bull market might be coming soon.

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Tom Lee: Bitcoin Bull Market Coming Soon



Tom Lee, the co-founder of Fundstrat Global has predicted that the price of bitcoin will likely experience a bullish run in the next 5 to 6 months.

Tom Lee, the co-founder of Fundstrat Global also known as the bitcoin bull has predicted that the price of bitcoin will likely experience a bullish run in the next 5 to 6 months. Lee predicted this during an interview with the CNBC. According to Lee, the 200 daily moving average is the number to keep in mind. If bitcoin is able to stay above $4000 till August this year, it will cross the 200 daily moving average and thus technically the overall chart would start to look bullish.

During the interview, he also mentioned that the future of bitcoin and other cryptocurrencies lies on the fact of whether it becomes an asset class and bitcoin is still in the early days of becoming one. Although Tom Lee has been quite bullish about the price of bitcoin, Fundstrat had recently posted a warning that the cryptocurrency market might crash to a new bottom before actually starting a bull run.


Tom Lee on JP Morgan Coin:

In the interview, Lee also expressed his concerns regarding the recently launched JP Morgan Coin which is a stablecoin launched by the banking giant JP Morgan Chase. He said that things such as the JP Morgan Coin and Facebook Coin create use cases for cryptocurrencies and according to him, the JPM Coin is surely not a competitor to bitcoin as it is a stablecoin in nature.

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Alert: Bitcoin Breaks Record, Highest Hash Rate Since November 2018.



The hash rate of bitcoin which is the power that secures the bitcoin network has recorded the highest level yesterday (19th March) since last year November.  The Bitcoin hash rate passed over fifty-two quintillion hash per second in accordance with the data feed on


Bitcoin Hash Rate:

Bitcoin hash rate is the computation of the performance of bitcoin miners. In simpler terms, as the hash rate goes higher, the bitcoin network becomes more secure. It becomes more difficult to attack the bitcoin network as an attacker would need increased resources in order to attack the network. The increasing hash rate also depicts the increase in the number of bitcoin miners. As the BTC mining difficulty level is quite stable now, more and more miners are joining the bitcoin network. Although, the increasing hash rate would eventually result in an increase in the overall difficulty level.

bitcoin hash rate 19th march

Bitcoin hash rate 19th March 2019


The bitcoin network security is at its peak since November last year. The highest hash rate ever recorded has been around 62 quintillion hash per second in August last year. Looking at the current chart, it depicts that the hash rate might even cross this level in the coming time.


The increased hash rate also builds up confidence in the minds of the miners as it shows the overall security of the bitcoin network and thus predicting a secure future of the investment of the miners. Thus, overall, more and more miners are now joining the bitcoin mining network after a subsequent decrease last year which led to a lot of miners moving out of the mining business. Bitcoin price analysts believe that the hash rate of the network follows the price of bitcoin as it helps them in speculating the future price of BTC.


During last year’s bear market, the hash rate also fell drastically which led to a lot of miners shutting down and the mining equipment were being sold at waste prices. Now as the hash rate is rising, miners are again turning on their mining rigs and moving back to business. It is also worth examining that the current hash rate of the network is even more than the recorded hash rate in December 2017 when the price of BTC went up to $20,000.

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