Crypto mining’s future will become more tech oriented, says CEO of RRMine global.
RRMine Global CEO, Steve Tsou, said at a Cointelegraph China Great Bay Area International Blockchain Week pre-event interview on July 29 that the future of crypto mining will transit from labor-intensive companies to technology-intensive and capital-intensive companies. It will be all about computing power.
Computer power and the digital economy
With the rapid development of new generation information technologies such as 5G, big data and cloud computing, the demand for computing power will likely increase. Tsou believes that a computing power revolution is imperative. He continued:
“Therefore, as a new infrastructure industry in the new market, computing power will play the role of “engine” in the digital economy and will grow rapidly. This is a vast blue ocean market, which can accommodate multi-dimensional competition. Both enterprises and individuals can develop their strengths in capital, technology, supply chain, resources, market and other aspects according to their own advantages, playing a role in the appropriate track to join the trend of the time.”
Computer power also has financial attributes, according to Tsou, so the introduction of financial technology and innovation of technology is an unavoidable challenge and opportunity for the platform.
Crypto mining potential risks
Tsou argues that there are risks in any industry. The core risks in the crypto mining business involve sufficient preparation for products, strategies and tactics, market predictions, and effective hedging methods. He explained that:
“It needs global deployment and large-scale anti-risk capability, which requires enterprises to have sufficient technical strength and global deployment to adapt to the rules of IPFS mainnet and its economic model. Then, the core mining pool technology is required to ensure a stable block generation rate and stable output at unit cost of computing power.”
Tsou concluded that mining today is more centralized than before. It is an inevitable trend, he believes. He explained that:
“But this kind of centralization is after decentralization and I call it “weak centralization.” This is centralized relative to individuals, while it is a more healthy and sound decentralization regarding the entire network. It can be defined as jointed individuals in the form of a tribal federation, which also reflects the characteristics of blockchain and is more in line with the development trend of real human society.”