Bitfury Won’t Sell Mined Bitcoin

Bitfury Won’t Sell Mined Bitcoin

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The bitcoin market is not anything new. It has been around for some time now and it can truly represent the future, as many institutions and companies all around the world start to believe that.

Bitcoin is simply a kind of digital currency that is both created and held electronically. So, instead of using money or your debit/credit cards to pay for a product or service, you can use bitcoin.

Despite the similarity with the current dollars or euros you use now, bitcoin do have some specifics that seem to be attracting many people. One of them is the fact that people can actually produce them simply by using software that solves mathematical problems. One of the main differences between the two kinds of currencies is the fact that bitcoin aren’t controlled by any institution.

In the last few years, we have been seeing bitcoin attracting many people. This means that the demand is increasing. And these people aren’t only individuals like you. There are also many different companies and institutions that are trying to enter the bitcoin market. One of the things that are attracting them is the price. Bitcoin just touched the $980 price and is considered, by many, as one of the safest ways to hold currency. The Bitcoin market is very transparent. Every transaction is stored in the blockchain.

blockchain

Despite anyone can create and hold Bitcoin, the fact is that they need special software to do it. And there are many different companies providing this service – they are called miners. One of the top mining companies is Bitfury. And they just got an approach to selling Bitcoin in bulk outside the open market.

This could be a great opportunity for Bitfury to cash in. However, they just informed the potential buyers – Investors and Assets Under Management (AUM) funds that they were not willing to do so.

With the demand for Bitcoin increasing, accompanied by the price rise in the open market, the investors and AUM funds have been targeting smaller miners and actually buying Bitcoin in bulk from them. This is a great opportunity for them because they are able to buy Bitcoin at a lower price and build their assets before the currency hits a new high. They are clearly making a strong bet on this cryptocurrency as they believe in its long-term potential.

But the lower price is not the only factor that they were considering when they made their proposal to Bitfury. They wanted fresh Bitcoins, the ones that aren’t yet available in the market for circulation. But why is this so special?

Fresh bitcoins won’t have any transaction history associated, and this is a big reward for miners. And this single fact makes them even more valuable and both investors and AUM funds are willing to pay a premium price for them.

There are a lot of reasons that are behind the increase in the demand of the Bitcoins. Not only individuals want to feel safer when using currency especially after the financial system crisis that affected (and still affects) some countries, as well as major companies, institutions, and investment firms. Since the demand is increasing, the biggest companies need to find alternative ways to buy them besides the open market. They would not only need to pay such a higher price for them, as they would be able to get more crypto coins. Sometimes, and for some of these companies, the traded Bitcoins in the open market aren’t just enough for what they need to buy. Many of the different cryptocurrency platforms have a max limit to the amount the users can buy or sell. So, they just need to contact directly the miners such as Bitfury.

Despite some deals were already made with smaller miner companies, Bitfury, one of the biggest ones, isn’t willing to do that. Just like what the Bitfury Vice Chairman, George Kikvadze said on Twitter, on the 21st December, “Last 24hrs couple of $10bln+ AUM Funds calling to buy 30k-50k bitcoins. We were not selling then/not selling now”.

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