Looks like the sociopathic banker corporation Blackrock has started purchasing shares in 4 of the largest Bitcoin mining operations on the planet. What does this mean for Bitcoin? Well, to be blunt about it if Blackrock ends up with a majority share in these bitcoin mining operations and end up with access to over 51% of the hashrate it could spell the end of BTC being a hedge against the incredible inflation rates we see happening in the worlds' fiat / monetary systems.
Blackrock Buying the Fucking Dip on BTC Mining
Now I'm not saying that a 51% attack on BTC from Blackrock is imminent at this point. But with a majority of large BTC mining corps posting losses in the past while Blackrock has taken it upon themselves to take positions in the industry by beginning to buy up shares in these large mining firms.
This is a bit troubling to be honest, and frankly what people have been worried about ever since GPU mining started being feasible years back. Bitcoin mining is no longer as decentralized as it once was given the advent of ASIC mining machines years back. It's no longer feasible for the average person to mine BTC without significant up front investment in the specialized ASIC mining machines, and even if they do have the capital to invest in the machines return on investment has been rocky at best, given the ever growing difficulty on the network to find a block.
The hashrate and therefore difficulty of the Bitcoin blockchain seems to almost always trend upwards from month to month and given the price of BTC has not entirely kept up with the difficulty rise lots of these mining firms have been reporting loses, leading to their share prices to fall, giving Blackrock a great opportunity to enter the mining space. There are sometimes dips in the hashrate however, as the price of BTC lowers the older ASIC machines are turned off as they don't even make back their electricity cost to run.
But What Does it All Mean?
Hard to say for sure what this move by Blackrock into the Bitcoin mining industry will have on the long term viability of the network. Provided they keep their stake in these companies below a point where they have control over the mining firms I think as a whole BTC will be alright. However, this is a troubling development in the way Blackrock is doing business. With their Bitcoin ETF on the horizon as well as them buying up share in mining companies we may very well live to see the complete take over of control of the Bitcoin network leading to a massive loss of value and trust in the vision and technology Satoshi gifted the planet with.
While it's to early to say exactly what is on the horizon.. I can't help but feel this isn't a good thing for crypto as a whole. When people use to talk about mass adoption they seemed to forget that corpos getting into the ecosystem is part of it, and some of these corporations yield MASSIVE financial power and the ability to turn the whole crypto scene on it's head provided they get access to enough hashing power to do 51% attacks. Not screaming the alarm out quite yet, but this newest development of Blackrock buying into crypto mining is certainly concerning for those in the space.
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