BITCOIN PRICE RUINS CLOUD MINING AND HERE’S THE GOOD NEWS

As we’ve been following for you here on CCN, Cloud Mining has been taking a beating with the precipitous drop in Bitcoin price over the lasts several months. The profit margins have become thinner and thinner, and now may be non-existent for many in the industry. Some reports have as many as 30,000 miners leaving the industry since BTC has entered the $300-and-below range. Many Bitcoin critics are eager to take this as a sign of Bitcoin’s inherent weakness of value. Is that the case? Can this purging of clouded, corporate miners, in fact, be a good thing?
In order to take advantage of the swollen BTC price in late 2013, the ‘Cloud Hashing’ or corporate cloud mining industry took off. Plenty of people worldwide suddenly became very interested in investing in the cloud mining concept. The amount of miners has passed 75000 in total. Question is: Does Bitcoin need 75k miners to be effective?
MIT’s Technology Review spoke with Harvard Associate Professor Benjamin Edelman. His research on Bitcoin says to him that these current issues can cause a more widespread problem in the industry.

This post was published at Crypto Coins News on January 20, 2015.