Bitcoin Global News (BGN)

August 13, 2018 -- ADVFN Crypto NewsWire -- It looks like we are going to see a Crypto mining firm go public and it’s not just any Crypto mining firm. Apparently Bitmain has already reached an initial estimated valuation of $18 billion before its scheduled September Initial Public Offering.

This outpaces Coinbase’s recent valuation of $8 billion, though in their case, this was self reported and not done for an upcoming IPO.

If Bitmain succeeds in going public to the tune of $18 billion, then their IPO will be better than Facebook’s was, which was already record breaking. Reportedly, the only reason they won’t be the best IPO ever is because Tencent Music, a wing of the same company behind WeChat, will go public during the same period.

If all of this is looked at from Bitmain’s standpoint, one can still say that everything is coming up roses, so to speak. If they successfully run this IPO, then they will be leading the Blockchain space in their niche, while also being one of the most fiscally powerful companies on the traditional stock market.

The key question is: do we, as Blockchain professionals and prospective or long-time investors, want this to happen?

Related to this, what’s the downside for everyone else in the space if this does go through?

As of now, the chief problem with Bitmain relates to centralization. At its core, the Blockchain industry is supposed to be as decentralized and therefore, as fair as possible given the technology that it springs from.

In other words, Bitmain has become the undisputed mining leader, leaving almost every other mining company far behind in terms of their control of the niche. For example, in June, Crypto Coins News reported that Bitmain alone controlled about 51% of Bitcoin’s hash rate. If the significance of this is not quite clear, this effectively means that the chance of winning the block reward.

Historically, any changes on the Bitcoin network had to be approved by a majority of its miners. Therefore, this also means that Bitmain might be said to have the majority stake in the future of the Bitcoin network.

Because all of this is true, the previously possibility of a downside to Bitmain’s IPO looms its head once again.

Do we want them to have even more control over the future of the entire industry, of any kind?

By: BGN Editorial Staff





 

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