The unprecedented boom in cryptocurrency mining has created a big bubble of sorts in the history of fintech world. Google’s Co-Founder Sergey Brin acknowledged the fact that cryptocurrency mining has fuelled a spike in computing. Brin wrote a letter to the investors and eulogized the role of mining in powering computing.
Bitmain Technologies Ltd, the Chinese powerhouse of cryptocurrency mining, has been credited with generating approximately 80 percent of world’s digital currencies. A feat similar to this was unheard of a couple of years ago. The Company offers computing chips, high-density server equipment, and large-scale parallel computing software.
Jihan Wu, the co-chief executive of Bitmain Technologies Ltd. revealed that the company clocked revenue of $3.5 billion in the year 2017. For successful cryptocurrency mining, the right chip along with an uninterrupted supply of electricity is mandatory. The nature of mining is so competitive and volatile is that no one in seriousness would risk starting with an inferior chip. This is where Bitmain found its sweet spot and the result is there for everyone to see. They are raking in the moolah. Their revenue figure tells a telling tale.
Even though Bitmain has succeeded far beyond Wu’s expectations, he’s already planning for the company’s next act: artificial intelligence. “As a China company,” says the taciturn 32-year-old, “we have to be prepared.”
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— Bloomberg Crypto (@crypto) May 17, 2018
The Chinese government went on a crackdown spree last year and imposed a ban on cryptocurrencies and initial coin offerings. The government has dropped enough hints of arresting mining activities. It has got mining players thinking, and they are contemplating diversifying their portfolio.
Crypto mining has borne fruits for Bitmain, but no one knows when government orders will put a spanner in works. Bitmain has pinned its hopes on Artificial Intelligence and hedging all its bets on it. Artificial Intelligence coupled with blockchain is being used to stop counterfeiting activity in the supply chain management by companies like Neuromation and Linfinity. AI space is ripe with possibilities and Bitmain is looking forward to owning the AI much like it holds crypto mining space.
Image via Bloomberg Crypto Twitter Page