HH Win Or Lose: The Gamble Some Are Taking To Become Bitcoin Billionaires

Recently, we looked at a few stories about how some people became bitcoin millionaires. While this feat is impressive, there are a few people who are vying to become part of an even more elusive group of bitcoin billionaires.

In this article, we will look at a few stories about the richest people in cryptocurrency. We will also examine some of the risks that the ultra-rich are taking and some of the potential benefits they hope to gain.

gamble

Jihan Wu – Bitcoin Mining

Jihan Wu is the CEO of Bitmain, the world’s top company of bitcoin mining rigs. Even though the company has only been around since 2013, it was able to bring in $2.5 billion in revenue in 2017 alone. According to Wu, most of the revenue is generated through the direct sale of mining rigs to bitcoin miners. Bitmain also has additional revenue sources like BTC.com and AntPool, two prominent bitcoin mining pools that account for 40% of the world’s Bitcoin mining. All of this has put the company at a private evaluation of anywhere between $9 billion and $12 billion. Wu and co-founder, co-CEO Micree Zhan own about 60% of Bitmain. 

Jihan Wu

Risks of Becoming a Mining Giant

Considering the cryptocurrency market was quite new when the company was founded in 2013, the risks were quite large. Many of these risks are heightened even more in 2018. For example, Bitmain’s headquarters remains in China, even despite the national ban of cryptocurrency trading, mining, and other potential obstacles.

Regulations in China and throughout the world aren’t the only risk that Bitmain has to consider.

Throughout 2018, there has been an increase in prominent projects that have made changes to their consensus algorithms to combat ASIC mining. For Bitmain, sudden changes can mean that some mining equipment (i.e. ASIC mining rigs) can become obsolete quickly and difficult to sell. Depending on production costs, the company risks losing serious amounts of money each time that a project makes algorithm updates.

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