Wall Street funding has changed Bitcoin mining’s incentive structure: Report

Bitfinex analysts say Wall Street funding of public Bitcoin mining companies has significantly altered the incentive structure behind Bitcoin mining.

The report highlights the imperative to maximize profitability and manage investor expectations as a critical reason for strategic decisions prioritizing financial performance over the Bitcoin community’s altruistic ideals.These are other qualities and ideals inherent to Bitcoin, which include securing the Bitcoin network, egalitarian access to the network and censorship resistance. The current landscape offers both opportunities and challenges the network’s foundational principles.

The report also suggests that “Wall Street funding” in corporate mining has fundamentally altered the incentive structure of the network.The resource disparity favors corporate miners’ ability to scale operations, secure more affordable energy contracts and invest in emerging technology.

Finance Finance Latest News, Finance Finance Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Stocks slip on Wall Street after another report on inflation that was worse than expectedStocks slipped after a mixed batch of data on the economy seemed to drive the final nail into hopes that easier interest rates may arrive very soon.
Source: latimes - 🏆 11. / 82 Read more »

Wall Street shrugs off the inflation report — plus, updates from a key health-care stockEvery weekday, the Investing Club releases the Homestretch; an actionable afternoon update just in time for the last hour of trading.
Source: CNBC - 🏆 12. / 72 Read more »