RRMine Global CEO Steve Tsu said in an interview a week before Cointelegraph China Great Bay Area International Blockchain Week on July 29 that the future of cipher mining is shifting from labor-intensive companies to resource-intensive and capital-intensive companies. It will be about processing power.
Computer power and digital economy
With the rapid development of next-generation information technologies such as 5G networks, big data and cloud computing, the demand for computing power is likely to increase. Tsu believes a revolution in computing power is crucial. He concluded with:
Therefore, as a new infrastructure industry in a new market, the power of the computer will act as an engine in the digital economy and grow rapidly. This is a huge blue sea market that has room for multidimensional competition. Both companies and individuals can develop their strengths in capital, technology, supply chain, resources, market and other aspects according to their own strength and play a role in keeping up with the trend of the time. ”
According to Tzu, the strength of the computer has economic properties, so the implementation of financial technology and technological innovation is a difficult task and an inevitable opportunity for the platform.
Potential risk of cryptocurrency mining
Tsu claims that there are risks in every industry. The main risks in crypto mining include adequate product preparation, strategies, tactics, market predictions and effective hedging techniques. He explained that:
“This requires global distribution and strong risk management capabilities, which require companies to have sufficient technical strength and global distribution to adapt to the IPFS rules of the network and their economic model. Therefore, the basic combined mining technology is necessary to ensure a stable mass generation rate and stable results with a single computing power. ”
Tsu concluded that mining is more centralized today than it used to be. He believes this is an inevitable trend. He explained that:
“But this type of decentralization comes after decentralization and is called ‘weak decentralization’. “It is critical for individuals, while there is healthier and healthier decentralization for the entire network. It can be defined as simple individuals in the form of a tribal association, which also reflects the characteristics of the blockchain and is more consistent with the development trend in real human society.