The Mighty Bitmain
Bitmain, formally known as Bitmain Technologies Ltd., is a bitcoin miner, designer of ASIC chips, and operator of one of the largest Bitcoin mining pools headquartered in Beijing, China.
If you keep up with cryptocurrency news, youve probably heard the name Bitmain by now. Some people seem to love Bitmain, some say its evil, but what exactly is Bitmain?
A Little Background
Bitmain was founded in 2013 by Jihan Wu and Micree Zhan, right as the first Bitcoin price surge was nearing its top. A lot of companies were getting into the mining game, but Zhans ASIC designs (Ill talk about ASICs later) quickly put Bitmain on the map. Soon after, the Bitcoin price tumbled and put a lot of companies out of business. Bitmain held on.
When interest in the digital gold started to pick up again, Bitmains Antminer S5 was the best hardware available, and so became the majority favorite. And when it comes to computer hardware production, economies of scale often form.
This means that the bigger the company and more powerful their hardware, the faster the company can grow and improve. This can be seen with the major semiconductor company Intel, whose processors are running in nearly 70% of all computers worldwide. Once a lead has been obtained, its very hard to lose.
This head-start in quality and popularity gave Bitmain the boost to end up on to...