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Cloud Mining Will Profit From Bitcoin Price Rise, Says Genesis CEO

Last Updated March 4, 2021 4:42 PM
Dean Walsh
Last Updated March 4, 2021 4:42 PM

genesis cloud miningMarco Streng, the CEO of cloud mining operator Genesis Mining, has reaffirmed his company’s long-term commitment to the industry in an interview with CCN.com.

Striking a positive note on the future of an industry which has been in turmoil over recent months, Streng claims that his company is currently in a “favourable position”. They could keep operating even if the price of btc were to fall as low as $100 USD. Even with a price lower than that, there would still be a demand for hashpower, as Streng notes:

“Bitcoin is not the only cryptocurrency and our proprietary system and technology gives our users the unique opportunity to also diversify the hashpower over other altcoins.”

There is no doubting that the Bitcoin mining industry has seen its fair share of troubles recently. Miners already operating in a competitive industry have struggled to cope with the declining value of the coins they mine against fiat currencies like the U.S. dollar. By investing many thousands of dollars in hardware, miners are effectively betting that the price of bitcoin in the future will be high enough to justify their investment. So when the price drops as dramatically as it did throughout most of 2014 and even into early 2015, miners are hit hard. Combine this with competition from hobbyists who do it for the fun and therefore don’t need to come out in profit, and you come up with a recipe for disaster.

Fallen Champs

Many of the biggest names in the game have already fallen prey to this disaster, with industry’s biggest player, CEX, announcing its temporary retirement from cloud mining just two weeks ago – soon followed by another announcement from ZeusHash saying they may be forced to do the same.

Streng acknowledges that his business is still facing a tough situation and that operations such as his are, to a degree, hostages to fate. But he also insists that potential long term opportunities outweigh any short-term losses that might be incurred. Mining is a business whose success is directly tied to the price of bitcoin – it is way to early to call the death of either one.

“We are here for the long term and remain bullish on the future of cryptocurrencies. As the market turns back into a bull market it will quickly become a huge rush on mining hardware again since it would then be an opportunity to still acquire discounted Bitcoins while the price is increasing in value. I can say with great confidence that people who already have the hashpower by that time enjoy a strong position while others desperately try to buy mostly sold out mining products,” says Streng.

Of course, there is no way to know whether the current upturn in bitcoin’s price will continue or whether 2015 will see another year of long-term decline. But for many Bitcoin miners who count themselves amongst the cryptocurrency’s biggest believers, that bet will always be worth taking over and again.