Anyone who is into bitcoin mining knows that mining is concentrated in the hands of a few large corporations, the largest one being Bitman. Now Bitmain has introduced a new miner known as Antminer x3, which is meant to mine Monero, the top rated privacy coin. However, the developer team at Monero is not impressed. As a matter of fact, they have announced that they will be implementing software changes that will make Antminer x3 useless. So why is the Monero (XMR) team so aggressive against centralized mining? Well, there are several factors to it, and they are all genuine concerns.
Firstly, there is the concern that Bitmain is using centralized mining to control and manipulate currencies. For instance, some reports have emerged that Bitmain was taking advantage of bitcoin’s proof-of work algorithm giving it an edge over other miners. The company has also been accused of implementing some tech called Antbleed, which gives it the power to cut off miners at will.
With such issues, the Monero (XMR) team is afraid that Bitmain is trying to corner Monero mining, just like it has done with Bitcoin, yet this goes against the whole essence of cryptocurrencies. To understand the impact of Bitmain’s actions, you just need to look at Siacoin. Bitmain introduced a miner that was meant specifically for this crypto, and in no time, they were fully in control of it. If the same were to happen to Monero, it would have a negative effect on its price, since it would no longer be a cryptocurrency, but just another asset that can be manipulated at will.
Another factor necessitating Monero’s move is the fact that the primary driver to Monero’s value is its censorship resistant nature. That’s why it is one of the cryptos that has a good long-term value growth potential once governments get more aggressive in regulating cryptos. As cryptos like bitcoin fall into the regulation pitfall, money is guaranteed to flow into Monero. This value potential would vanish if Monero were to fall into the trap of centralized mining, like is being tried by Bitmain. That’s because governments would be in a position to control all Monero activities by cooperating with Bitmain. Bitmain can easily be bribed and implement whatever actions governments want.
In essence, the announcement by Monero (XMR) to introduce a kill switch for Bitmain’s centralized mining is that it will increase investor confidence in Monero. Investors will now be under the impression that Monero wants to maintain the core value of blockchain technology, and that’s decentralization. This move is also likely to attract more miners into Monero, thanks to the assurance that the developer team cares about their activities.
Such news combined with the growing calls for crypto regulation make this a perfect time to invest in Monero. This is a crypto that could easily outperform the market in 2018. Everything about it seems primed for a takeoff, given that privacy coins are the future, and Monero (XMR) is leading the way.